Bashas’ Supermarkets Inc. has announced the closure of 10 more stores by July 21 — negatively impacting approximately 1,000 jobs Valley wide.
Earlier this year, Bashas’ closed five under-performing stores. The store closures, attrition and about 300 layoffs at its corporate headquarters have resulted in the Chandler-based grocery chain eliminating 1,700 people from its payroll in the past year.
The company, the only one of the state’s top-five grocery chains that is locally owned, is still run by the Basha family that founded it in 1932.
Bashas’ competes in a highly competitive grocery market, with Wal-Mart and Fry’s as No. 1 and No. 2, and in a climate where recession-ravaged shoppers have cut back to necessities and cautious lenders have clamped down on providing credit, according to a report in the daily.
The chain has now filed for bankruptcy protection in the U.S. Bankruptcy Court in Phoenix, a move that will impact thousands of creditors — both large and small. Bashas’ owes as much as $55 million in unsecured debt to between 20,000 and 25,000 vendors, many of them Arizona businesses — and $84 million in long-term debt to a group of lenders led by Prudential Securities and $110 million in revolving loans to a group of banks led by Wells Fargo.
The report can be read here.
The following locations are slated for closure::
•1919 E. Ray Road, Chandler
•6085 W. Chandler Blvd., Chandler
•4321 E. Baseline Road, Gilbert
•4727 E. Bell Road, Phoenix
•18785 S. Interstate 19 Frontage Road, Green Valley
•687 S. Lake Powell Blvd., Page
•1761 E. Arizona 69, Prescott
•4335 W. Glendale Ave., Glendale
•1648 S. 16th St., Phoenix
•4338 W. Thomas Road, Phoenix