The Sedona Bashas’ and two other Verde Valley locations will stay open despite Bashas’ Supermarket recently filing Chapter 11 bankruptcy.
Bashas’ voluntarily filed Chapter 11 reorganization under the U.S. Bankruptcy Code on Sunday, July 12, President and Chief Operating Officer Mike Proulx said.
“The decision to voluntarily file was made after careful consideration to help us emerge as a healthier and more competitive company,” he said.
According to Proulx, the family-owned company started in Arizona 77 years ago and it’s not planning on going anywhere.
“We’re not closing down; we’re not selling our business. We’re taking the time to refine and strengthen our operations for the future,” he said.
The company will close 10 of its 158 stores scattered throughout Arizona, with
one in California and one in New Mexico.
Of the 10 shuttered stores, seven will be Bashas’ locations and three Food City stores. Seven of the closures will be in the Phoenix area, one in Prescott, one in Page and the other in Green Valley.
“This reorganization will allow us short-term to evaluate our organization and all options are on the table, including more store closures and more staff layoffs,” Proulx said.
According to the president, three factors led to the company’s bankruptcy: the national credit crunch; Arizona’s economy with rising unemployment; and the International and Local Grocers Union of Arizona allegedly threatening to destroy Bashas’ after management upheld workers’ rights to secret ballot elections.
Bashas’ company filed a lawsuit against the union in 2007 and expects to go to trial the later part of 2010, Proulx said.
According to the union’s Sen-ior Campaign Communications Specialist, Corey Owens, the union’s goal is to ensure good jobs in the retail industry.
“We hope Bashas’ uses this opportunity to address the concerns of all these stakeholders as it considers how it should emerge from bankruptcy,” he stated. “The United Food and Commercial Workers International Union stands ready to engage in constructive dialogue with the company.”
Despite the company’s financial woes, Bashas’ stores in Sedona, Camp Verde and Cottonwood are high-producing stores, Proulx said, so he doesn’t predict any Verde Valley closures.
On Wednesday, July 15, Bashas’ customers in Sedona were out to support their local branch.
After hearing the news of its bankruptcy, Judy and Morris Massey headed to Bashas’ in support.
“I really like their meat and seafood and their deli,” Morris Massey said, before raving about the weekend barbecues in the Bashas’ parking lot.
“We’re not abandoning Safeway,” Judy Massey said, “but we thought we should support Bashas’.”
Dick Evans lives up the street from Bashas’ and although he already frequented the store, he decided to support it more after hearing the news.
“It’s convenient and their prices are good,” he said.
Bashas’ is determined to work through the recession and its reorganization, Proulx said.
“We’re proud that we’ve been involved in communities throughout the state. We’re proud of our service with charities and churches,” he said. “We believe in our people, our state and Arizona families. We look forward to continuing to serve the grocery needs of Arizonans for years to come.”
Alison Ecklund can be reached at 282-7795, ext. 125, or e-mail
aecklund@larsonnewspapers.com
