The Piggly Wiggly was initially supposed to open its doors in January 2022, but delayed opening until August 2022, citing supply chain issues. Then just over a year later, the store announced its closure in September 2023, citing low sales.
Rice said the area had been without a store for so long that “folks may have found it easier to ‘keep my same routine’ than to stop at Piggly Wiggly.”
The store was supposed to pay back its loans over time, but Story said that as it started to fail, it fell behind on payments. It hasn’t made a payment since it closed and most of the $900,000 hasn’t been paid back.
Story said the city has received only $145,000 in payments and proceeds from liquidated assets against the loan.
“Although we’re really disappointed, there was no expectation that there was any other source of payment,” Story said. “We knew the risk that was associated with the store and that the store would need to succeed for their loans to be repaid back.”
In April, the city auctioned off the store’s equipment, netting just over $73,000 after the auction house’s commission.
Items sold included meat cases, produce bins, shelves and a soft-serve ice cream machine.
An itemized listing of all the Piggly Wiggly equipment the city of Spartanburg auctioned off earlier this year.
“We’ve clawed back some of the investment and we’re going to continue to pursue (Burton) for the rest,” city attorney Bob Coler said.
In the next few months, the city plans to send a demand letter to Burton, Coler said. And if that doesn’t work, they could go to court.
The city’s loans were secured by Burton’s personal assets, Coler said.
“We will pursue a judgment,” he added, “and if we’re able to get a judgment, we’ll pursue collecting that judgment with whatever assets he’s got that he’s pledged.”
Mary Black Foundation CEO Molly Talbot-Metz said the nonprofit’s $600,000 loan will be repaid by the city, but its other $300,000 loan was unsecured and will be turned into a grant.
