Bashas Files For Chapter 11 Bankruptcy Reorganization

July 14th, 2009 - 7:37 pm ICT by GD  

bashBashas’ loyalists have a lot more worries on their hands now, as reports seem to suggest that Bashas’ Inc. has filed for chapter 11 bankruptcy reorganization in an US Bankruptcy Court on late Sunday night. Reports suggest that the business organization has been badly stung by the national credit crisis as well as the declining growth in Arizona. Tit bits leaked from the executives indicated that the chain, which is the largest private grocery chain running in Arizona, would remain open; but for that they have plans to shut down almost close to 10 stores by July 21 and terminate about 1,000 employees.

Mike Proulx, the company president told a news conference on Monday, “The current population cannot fully support the overabundance of stores in what has become the most fiercely competitive grocery market in the country.” Proulx, in his statement also blamed the company’s clash with the union, that was trying to organize the company’s workers.

Bashas’ Inc. and two associated companies, Bashas’ Leaseco and Sportsman’s LLC jointly filled the bankruptcy reorganization petition. The Chandler based company runs the Bashas’, AJ’s Fine Foods and Food City stores, while Sportsman’s LLC operates Sportsman’s Fine Wines and Spirits. Bashas’ is the only one of the locally owned grocery store chain that is operating in the region. It is a completely family business and was founded in the year 1932. The popular chain has almost 150 stores in total.

Bashas’ had scheduled a news conference at 10 a.m on Monday morning to shed more light on the details regarding the bankruptcy. In the days to come, the company is going to confirm which stores are going to be shut down, at a news conference.

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |

Subscribe