Andronico's market, a high-end grocery store that's been a fixture at Stanford Shopping Center since 1997, will close its doors July 24.
The "rough decision" to close the Palo Alto location came as the family-owned business works through a recapitalization with an unnamed equity partner, a spokeswoman said.
Employees said they were told of the closure Friday.
Around opening time Monday morning it appeared to be business as usual, with freshly stocked shelves of cheese, baked goods and still-warm bread.
"We're hoping to stabilize and strengthen the company long-term" through the reorganization, Diane Krebs, the company's operations administrator, said Monday (July 18).
Signs on the store windows touted big discounts through the July 24 closing, and referred shoppers to the Andronico's in Los Altos's Rancho Shopping Center for the future.
Andronico's was founded in Berkeley in 1929 by Greek immigrant Frank Andronico, and is currently operated by Bill Andronico.
The company has four stores in Berkeley, one in San Francisco, one in San Anselmo and the one in Los Altos.
In 2006, a Danville store was sold and a Walnut Creek location was closed.
"It's unfortunate they are closing because they're a great grocery store and a wonderful addition to the shopping center," said Julie Kelly, Stanford Shopping Center's director of marketing and business development.
"We have a number of options currently under consideration, but no decision has been made for a replacement at this time."
Palo Alto Chamber of Commerce President Paula Sandas said Palo Alto is seeing "some local grocery stores failing or struggling to hang on, while others are thriving."
"Grocery consumers appear to be both location- and price-sensitive -- witness the popularity of Trader Joe's that locate in spaces that were previously grocery stores or have demand for a grocery store, and they sell their products at lower price points," Sandas said.
She noted that larger chains "are carrying more specialty and organic items at lower price points that local consumers used to have to purchase at specialty grocers."