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Willcox Food City open despite Bashas' Chapter 11 filing
Carol Broeder/Wick communications
Bashas' Family of Stores, the parent company of Food City, has filed for Chapter 11 bankruptcy protection, but the Willcox store will remain open.
The largest family-owned grocer in Arizona and the 15th largest privately-held supermarket chain in the nation announced it had voluntarily filed for reorganization under Chapter 11, said Bashas' spokeswoman Kristy Nied.
At the same time, it announced the closure of 10 stores, set for Tuesday (July 21).
That includes seven Bashas' stores and three Food City stores set for closure on July 21. The company had already closed five other stores in February.
All other stores in the statewide chain, including the Food City in Willcox, will remain open and continue regular operations.
Store Director Russell Scheid said that his company would not allow him to make a comment for the newspaper.
However, on a personal note, Scheid said, "We are in good shape. The company will be in good shape."
The Chandler-based company and its operating entities - including Bashas' Food Stores, Food City and AJ's Fine Foods - are seeking to have the case administered by the U.S. Bankruptcy Court for the Arizona District.
In its filing, Bashas' claims it has about $200 million in assets and close to $245 million in debt.
A Chapter 11 protection typically allows a company to hold off creditors and operate as normal while it develops a financial reorganization plan.
"We made this bold move to help preserve the business, and the jobs of our more than 10,000 members (employees)," said Mike Proulx, Bashas' president and CEO.
"We did this to improve the health of the company as we navigate through difficult economic times," he said Monday.
"This filing helps us to stay on track with both the company's short and long-range plan, and to solidify our position as Arizona's preferred local, family-owned grocer."
Nied said that according to company executives, the decision to file was made after evaluating a combination of three factors:
The national credit crisis, which has caused credit markets to tighten;
An especially challenging Arizona economy and stagnation of growth which has, in effect, caused the state to be "over-stored;" and
The repeated, ongoing attacks from the international and local grocery workers' union, designed to defame and intentionally interfere with the grocers' operations.
"We are confident that our Family of Stores is here to stay," said Edward (Trey) Basha, a senior vice president and Basha family spokesman.
"We're not winding down operations, and it is not our intention to sell to another entity," he said Monday.
"We've been privileged to serve the needs of Arizona families for more than 77 years and we're committed to continue that tradition."
Bashas' has financial backing and has obtained a Debtor in Possession (DIP) loan commitment for $45 million to continue operations, Nied said.
"ABCO Markets, Mega Foods, and Southwest Supermarkets did not have that," Proulx said.
"It's our intention to operate our business so as not to impact our member (employee) wages or benefits and to continue to provide fresh products at competitive prices for our customers," he said Monday.
"The short-term plan is to emerge from Chapter 11 in the first quarter of 2010, and clearly we're developing long-term strategies to ensure future success," Basha said.
For more information, a toll-free hotline is available at 1-866-329-5412 or visit www.BashaRestructuring.com.
Bashas' operates more than 150 stores, nearly all of them in Arizona, but also in California and New Mexico.
Founded more than 77 years ago by brothers Ike and Eddie Basha, Sr., it has since become the largest family-owned grocer in Arizona and the 12th largest employer in the state.
Employees have voted for the company to be named one of the "Best Places to Work in Arizona" for three years in a row, Nied said.
Since its inception in 1932, Bashas' has given back more than $100 million to the communities it serves, she said.
(Carol Broeder is a reporter at The Arizona Range News in Willcox. Inside Tucson Business contributed to this report.)
Bashas' Family of Stores, the parent company of Food City, has filed for Chapter 11 bankruptcy protection, but the Willcox store will remain open.
The largest family-owned grocer in Arizona and the 15th largest privately-held supermarket chain in the nation announced it had voluntarily filed for reorganization under Chapter 11, said Bashas' spokeswoman Kristy Nied.
At the same time, it announced the closure of 10 stores, set for Tuesday (July 21).
That includes seven Bashas' stores and three Food City stores set for closure on July 21. The company had already closed five other stores in February.
All other stores in the statewide chain, including the Food City in Willcox, will remain open and continue regular operations.
Store Director Russell Scheid said that his company would not allow him to make a comment for the newspaper.
However, on a personal note, Scheid said, "We are in good shape. The company will be in good shape."
The Chandler-based company and its operating entities - including Bashas' Food Stores, Food City and AJ's Fine Foods - are seeking to have the case administered by the U.S. Bankruptcy Court for the Arizona District.
In its filing, Bashas' claims it has about $200 million in assets and close to $245 million in debt.
A Chapter 11 protection typically allows a company to hold off creditors and operate as normal while it develops a financial reorganization plan.
"We made this bold move to help preserve the business, and the jobs of our more than 10,000 members (employees)," said Mike Proulx, Bashas' president and CEO.
"We did this to improve the health of the company as we navigate through difficult economic times," he said Monday.
"This filing helps us to stay on track with both the company's short and long-range plan, and to solidify our position as Arizona's preferred local, family-owned grocer."
Nied said that according to company executives, the decision to file was made after evaluating a combination of three factors:
"We are confident that our Family of Stores is here to stay," said Edward (Trey) Basha, a senior vice president and Basha family spokesman.
"We're not winding down operations, and it is not our intention to sell to another entity," he said Monday.
"We've been privileged to serve the needs of Arizona families for more than 77 years and we're committed to continue that tradition."
Bashas' has financial backing and has obtained a Debtor in Possession (DIP) loan commitment for $45 million to continue operations, Nied said.
"ABCO Markets, Mega Foods, and Southwest Supermarkets did not have that," Proulx said.
"It's our intention to operate our business so as not to impact our member (employee) wages or benefits and to continue to provide fresh products at competitive prices for our customers," he said Monday.
"The short-term plan is to emerge from Chapter 11 in the first quarter of 2010, and clearly we're developing long-term strategies to ensure future success," Basha said.
For more information, a toll-free hotline is available at 1-866-329-5412 or visit www.BashaRestructuring.com.
Bashas' operates more than 150 stores, nearly all of them in Arizona, but also in California and New Mexico.
Founded more than 77 years ago by brothers Ike and Eddie Basha, Sr., it has since become the largest family-owned grocer in Arizona and the 12th largest employer in the state.
Employees have voted for the company to be named one of the "Best Places to Work in Arizona" for three years in a row, Nied said.
Since its inception in 1932, Bashas' has given back more than $100 million to the communities it serves, she said.
(Carol Broeder is a reporter at The Arizona Range News in Willcox. Inside Tucson Business contributed to this report.)
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