Pro's Ranch Markets Files for Chapter 11
Pro's Ranch Markets, the super-awesome California-based supermercado of Latin foodstuffs with 11 stores in Arizona, Texas, and Mexico (7 are in Arizona), has filed for bankruptcy reorganization.
The over 30-year-old family-owned business has blamed the U.S. economy, naturally, as part of its move toward debt restructuring, but also on something far more concerning.
The Republic reports that in court documents submitted by Pro's Ranch Markets, the company's reasons for filing for bankruptcy not only include the struggling U.S. economy and a loss of construction jobs, but an "adverse, negative, and chilling effect of the perception of the State of Arizona toward immigrants and Hispanics, including the passage of SB 1070."
Last year, the U.S. Supreme Court shot down most of the unconstitutional SB 1070 provisions, which made being in the country illegally a state crime in Arizona.
The Republic goes on to say Pro's Ranch Market's bankruptcy filings, which were submitted last week, also state that "(Pro Ranch Markets) were effectively singled out for an immigration audit to which no other competitor was subjected."
Pro's Ranch Markets, known for fresh-made goodies courtesy of departments like a tortillería, agua fresca stand, and panadería, was named Arizona Retailer of the Year by the Arizona Food Marketing Alliance in 2012.
"We made this important move to improve the overall health of the company and save the jobs of more than 2,200 team members," says Rick Provenzano, Pro's Ranch Markets' chief operating officer and son of founder Mike Provenzano Sr., in a statement from the company. "We are and have always been a family business."
According to court documents, Pro's Ranch Markets, the Republic reports, owes $10 million to $50 million to different creditors and has estimated assets between $1 million and $10 million.
On an informational website Pro's Ranch Markets set up concerning the restructuring, Michael Provenzano Jr., Pro's Ranch Markets' chief financial officer, says the company has obtained a loan commitment for $3 million to ensure operations run smoothly throughout the reorganization process.
"We do not plan to sell or close any stores, and our shelves are fully stocked," says Provenzano.
The site also states Pro's has hired Phoenix-based HG Capital Partners as its restructure advisor.