The San Jose Mercury News reports that Mi Pueblo, the well-known Hispanic supermarket chain in Northern California, has filed for Chapter 11 bankruptcy protection, saying that while it "is current on all obligations to employees, suppliers and all of its creditors, including its secured creditors," it is having trouble with its bank, Wells Fargo, which has been looking to change the terms of existing loans.
Mi Pueblo said that it will keep all its 21 stores open, and will "use the bankruptcy as a chance to reorganize the 22-year-old grocery chain" and find a new bank.
"The bankruptcy filing presents a tough challenge for the company in the unforgiving supermarket industry," the story says, "where few have managed to recover from a Chapter 11 reorganization. Most supermarkets survive on hefty lines of credit and good-faith relationships with food vendors, experts say."
Mi Pueblo said that it will keep all its 21 stores open, and will "use the bankruptcy as a chance to reorganize the 22-year-old grocery chain" and find a new bank.
"The bankruptcy filing presents a tough challenge for the company in the unforgiving supermarket industry," the story says, "where few have managed to recover from a Chapter 11 reorganization. Most supermarkets survive on hefty lines of credit and good-faith relationships with food vendors, experts say."
- KC's View:
- The article makes the point how difficult it is for retailers to come back from such a filing, but I hope Mi Pueblo makes it ... this is a company that has meant a lot to the communities it serves, providing products and services to areas that are under-served by other companies.
