Dahl’s Foods has filed a voluntary Chapter 11 petition for reorganization in Des Moines, Iowa. Chapter 11 provides a process by which companies can reorganize and obtain necessary financing to complete a restructuring of its business while continuing regular business operations.
The process does not affect Dahl’s store operations. All Dahl’s locations will continue to operate as normal during the process.
“As we continue to seek the capital needed to maintain a competitive position within the communities Dahl’s serves, this is the best course of action,” said CEO Craig Moore. “Our board has approved the sale of the company, which will ensure that the stores come out of this stage successfully. Right now, our focus is on preserving our workforce and continuing to provide a competitive and connected store experience for our customers.
Associated Wholesale Grocers Inc. (AWG) has entered into an agreement with Dahl’s to buy the company’s operating assets. The member-owned wholesale grocery cooperative serves more than 3,000 retail member stores nationwide.
“Our intentions for entering into the agreement to purchase Dahl’s Foods are to provide an opportunity for a member of our cooperative to successfully enter the Des Moines grocery market, with some good locations, and to gain a strong and experienced workforce, which is already in the stores,” said Jerry Garland, president and CEO of Kansas City, Kansas-based AWG. “The current team at Dahl’s had commenced rebuilding this chain and we believe they have a good plan, but the financial position they found themselves in was just too big to overcome.
“We envision that once acquired, Craig Moore and the store teammates will be given additional and continued support, the stores will be remodeled and updated and steps will be taken to build a new brand and identity for Dahl’s stores, and ultimately the consumers of Des Moines can be provided with a better selection and value in locations that are familiar and staffed by friends and neighbors,” Garland said. “We believe this overall plan will strongly position these AWG member stores to favorably compete in Des Moines.”
Moore said that with this plan in place, “these stores will be able to operate from a better position than they have in recent times. The board is confident that this is the best decision to improve our competitive position and help the stores succeed.”