Citing a tough economy, tight credit market and protracted labor woes, Chandler, Ariz.-based Bashas’ Supermarkets Inc. filed for Chapter 11 bankruptcy protection.
The company reportedly plans to cut 10 stores July 21, which trims about 1,000 jobs.
According to the filing in the U.S. Bankruptcy Court for the District of Arizona, the company has about $200 million in assets and about $245 million in debt.
Only one produce company is listed among the retailer’s to 30 creditors — Spreckles, Calif.-based Blazer Wilkinson LLC — which is owed more than $300,000, according to court documents.
Bashas’ president Mike Proulx told the Sierra Valley Herald he believes the chain is in a good position to survive a difficult economy because it was able to obtain about $45 million in financing to stay open.
“We have the opportunity to develop a short-term and a long-term plan that will help us strengthen our operations, certainly strengthen our balance sheets and improve our cash flow positions to allow us to compete with … the tough competition we have,” he said in a July 13 article.
Ten stores are slated to be closed, seven under the Bashas’ banner and three under the Food City banner. More information on the restructuring is here.
Bashas’ has been in a long battle with the United Food and Commercial Workers union, which wants to unionize the company’s stores. In addition to trading barbs in the media and outreach to the public including mailings and a dedicated are on its Web site about the dispute (here), the retailer filed a lawsuit against the union in December 2007, which is ongoing.