CHANDLER, Ariz. — Bashas' here has filed for Chapter 11 bankruptcy protection, according to local reports.
The company could not be reached for comment this morning, but local reports quote senior executives at the privately owned chain as saying that the company had made the filing as a result of the tight credit market and difficult market conditions in the Phoenix area.
Basha's, which is privately owned, operates about 158 supermarkets in the region under the Bashas', AJ's and Food City banners. The chain had closed five stores earlier this year and had another 10 stores slated for closure beginning next week.
Mike Proulx, president and chief operating officer, was quoted in the Sierra Vista Herald as saying, "Our whole focus and intent is to not sell, not close down, not liquidate — when we emerge [from bankruptcy] the first quarter of 2010, we'll be a leaner, stronger, better operation for another 77 years."
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