Bashas’ grocery files for bankruptcy protection; closings result in 1,000 additional job losses

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.

 UPDATE:

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::

Bashas’:

•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

Food City:

•4335 W. Glendale Ave., Glendale
•1648 S. 16th St., Phoenix
•4338 W. Thomas Road, Phoenix

6 Responses to Bashas’ grocery files for bankruptcy protection; closings result in 1,000 additional job losses

  1. Kent says:

    When a 77 year old locally owned company is in danger of folding, putting thousands of Arizonans on the prowl for non-existent jobs, it is a sure indication of the troubled times.

  2. Sally Forth says:

    You’re right, Kent. Why Gov. Brewer is so bonded to a tax increase under the current situation speaks to her lack of understanding of the reality of what life is like for increasing numbers of Arizonan’s citizens.

  3. Vince says:

    Remember this: The Guv is surrounded by McCain advisors who want to further decimate jobs for Americans by opening the amnesty floodgates. We are in a world of hurt when our own Republicans are oblivious to the hardships faced by the same people who they expect to continue re-electing them to office. If they are returned to further screw us, it will be without my help.

  4. Dennis O'Brien says:

    This is a tremendous downfall for the Basha family, its employees and the Arizona economy. Although the overall economy is in the toilet, the unions, who have long been sticking a knife in the grocer’s ribs helped put this supermarket chain into this even worse shape.

    They must feel they have had a success!

  5. patriotmom says:

    I don’t really see how Basha’s can survive even with re-organization. They don’t have the prices nor the selection. Wal Mart has rolled out Marketside and Fresh and Easy has come to many areas. One analyst said that they will need to deliver service since they cannot compete on price.

    But service is not driving customer traffic- pricing is. Basha’s would be better served to strip to a no frills environment and offer cut rate prices. Due to a gloomy economic climate for some time to come, I would go with discounting over service for a larger customer base.

  6. […] But even the most cynical among us found ample reason to do a double-take at today’s coverage of ten scheduled closings of Basha’s grocery stores and the chain’s bankruptcy […]