Latino supermarket chain Mi Pueblo has filed for Chapter 11 bankruptcy.
The San Jose, Calif.-based company reports that it will keep all of its 21 stores in the Bay Area, Central Coast and Central Valley open as it reorganizes. Mi Pueblo has more than 3,000 employees.
A company lawyer, Robert Harris, told the San Jose Mercury News this week that the company is in a dispute with its primary lender, Wells Fargo. Harris said the bank wanted to change terms of Mi Pueblo’s loans after it became concerned about the company’s debt-to-credit ratio and its forecast revenues.
Harris told the News that the bankruptcy protection filing would allow the Mi Pueblo to continue doing business while it sorts out its differences with Wells Fargo.
On its Facebook page Tuesday, the company posted: “To all our customers, families and fans: Our decision to file for Chapter 11 Bankruptcy is rooted in our commitment to servicing our customers as we have for the past 22 years. Our stores will remain open and we will continue to operate our business as we always have, with care and respect at the forefront of our mission. We thank everyone for your ongoing support!”
The majority of the comments to the post were positive, with many offering notes of praise and support.