July 14, 2009
Arizona supermarket chain files Chapter 11
The bankruptcy of an Arizona supermarket chain is expected to send ripples through the Phoenix-area economy from lost jobs to empty stores.
Bashas' announced it will close 10 stores, effective next Tuesday, the Arizona Republic reported. The chain expects to cut 1,000 jobs.
Mike Proulx, the president and chief executive officer, said at a news conference Monday he expects Bashas' will be a stronger company when it comes out of Chapter 11.
We're not going out of business, he said.
We're not winding down operations, and we're not going to sell the company.
Bashas' owes its vendors $55 million. While the company says everyone will get paid what they are owed, the money will not be available right away. With many of its vendors local companies, that will also affect the area, the newspaper reported.
Headquartered in Chandler, a Phoenix suburb, Bashas' operates 158 stores, mostly in Arizona, under three chain names.