Penn wants to replace The Fresh Grocer at 40th and Walnut streets with an Acme Markets location, according to a spokesperson from The Fresh Grocer.
A statement from Facilities and Residential Services said the University found that the alternative "would provide the best urban grocery store to support the Penn and local community going forward."
The Fresh Grocer received notification that Penn is contesting the store's right to renew their lease, meaning they would be required to leave the premises effective in March, a spokesperson for The Fresh Grocer said.
"Fresh Grocer did not renew their lease in a timely fashion in accordance with the terms of the lease," the statement from FRES said. "As a result, we explored our options and issued a Request for Proposal to the grocery store community, which included Fresh Grocer."
The statement went on to say that FRES found a new grocery store to serve the needs of the community.
"We identified a new operator based on the Request for Proposal process, and we are now working on a smooth and orderly transition," the statement said.
The spokesperson from The Fresh Grocer told The Daily Pennsylvanian that the "new operator" was Acme.
The Fresh Grocer told its staff about the potential transition to prevent "any kind of whisper down the lane," but said they would "keep everybody informed."
"We’ve notified our staff and we’re actively working on a resolution," the Fresh Grocer spokesperson said. "Our intention obviously is to remain in operation and continue to provide employment and food access to the community."