Firms Angelo Gordon and MTN Capital, along with grocery veteran Bruce Weitz, are buying the stores. Weitz is the managing partner of the group, while the other firms are co-sponsors.

London-based Marks & Spencer, which is known for its 400 multi-channel stores in the UK, Ireland and Hong Kong, has tried to sell Kings since 1999. The company came close in 2002, when it reached an agreement with New York-area grocer D'Agostino's to sell the chain for $160 million, but that deal fell through. Marks & Spence acquired Kings in 1988 for $113 million.

During its most recent fiscal year, Kings posted $405.9 million in revenues and a $7.9-million operating profit. Those results were up from 2004, when sales totaled $403.2 million and earnings came in at $4.2 million.