Chandler, Ariz. The 15th largest privately owned supermarket chain in the country has filed for reorganization under Chapter 11.
Bashas' voluntarily filed for reorganization based on the national credit crisis, stagnation in the Arizona economy and what it called the “repeated, ongoing attacks from the international and local grocery worker’s union.”
“We made this bold move to help preserve the business and the jobs of our more than 10,000 employees,” Bashas’ president and CEO Mike Proulx said in a statement. “We did this to improve the health of the company as we navigate through difficult economic times.”
The company said it has financial backing and has obtained a debtor in possession loan commitment for $45 million to continue operations.
“We are confident that our family of stores is here to stay,” senior VP and Basha family spokesman Edward Basha said. “We’re not winding down operations, and it is not our intention to sell to another entity.”