Two investors have purchased the Mega Foods supermarket at 665 H St. NE, which closed in July and filed for bankruptcy to the disappointment of the neighborhood. They plan to reopen it in early November.

Ronald Chun, who has been in the grocery business for 20 years, and Yong Yun, former owner of a dry cleaners, bought the store for $800,000 as part of a settlement arranged through federal bankruptcy court.

D.C. Council member Nadine P. Winter (D-Ward 6) said she believes residents of the H Street area will welcome the reopening of the 30,000-square-foot store.

Winter said she has "a real sad feeling" that the former owners lost the business. "On the other hand, we have no chain store in the area. I have a lot of senior citizens calling me to complain about that. This is the only place they have to shop. I'm going to use my volunteer time to see that the store stays on that corridor."

The former owners are Arnold G. Montgomery and Henry H. Edwards. Under their ownership, Mega was known as the city's largest black-owned supermarket. Both men have extensive management experience, much of it in the food industry.

"Not much will change," said Yun, 47. "We will carry the same items for a while, and see what else needs to be sold and what changes need to be made."

Nelson Deckelbaum, attorney for Mega Foods, said the original owners were not involved in the negotiations.

"The company did everything within its power to keep its doors open," Deckelbaum said. "The selling of the business was a means of last resort."

The store's closing three months ago dealt a blow to the working-class neighborhood, which has suffered so many before. Once one of black Washington's major commercial thoroughfares, it was burned extensively in riots in April 1968, after the assassination of the Rev. Martin Luther King Jr. While some businesses, such as the Hechinger Mall, set up shop there over the years, others departed. The city has made a strong effort to revive it, locating a large District office building there a few years ago.

When Mega opened in 1988, the city provided an $800,000 loan. The store's wholesale supplier provided loans for inventory.

But the original owners said the undercapitalized venture was hurt badly by a picket by the food workers union. It averaged about 13,000 customers a week, but the owners said it needed an additional 2,000 to break even. In the end, the store needed $1.5 million to survive.

Chun did not blame the union for the store's demise. "That wasn't the only issue," he said. He and his partner are interviewing people for the more than 50 jobs.

Winter said she will work with the union "and hopefully they will give the corridor a chance. Mega didn't have the lowest salaries . . . . {The union} can't expect them to compete with a Safeway or Giant."

Deckelbaum said the money received in the settlement will be used to pay off the original store's wholesalers, B. Green & Co. of Baltimore, and back rent. It will not pay off the outstanding balances on government loans.

Yun sold his Southeast Washington dry cleaner business, and Chun, 52, sold his Food Star Supermarket in Arlington to raise the money to buy Mega. They expect to borrow an additional $600,000 to restock shelves.

In the past, there has been tension in some neighborhoods between Korean American business owners and black residents who view them as invaders who take money out of the community and fail to contribute anything.

Yun said he and his partner will talk to community groups to try to dispel any wariness. He said he has considered such criticism and is not troubled by it.

"I have had my cleaners on Martin Luther King Avenue in the black community for 11 years and have been involved in a lot of community activities," he said. "We are going to interview and hire people in the community. I feel at home here. There is no problem."