Business & Tech
Mi Pueblo Grocers File Bankruptcy
But employees continue to receive their paychecks and the San Rafael store remains open.
Mi Pueblo filed for federal Chapter 11 bankruptcy protection Monday morning.
The San Jose-based grocery store chain has a location at 330 Bellam Blvd. in San Rafael.
Mi Pueblo announced the bankruptcy filing in a prepared statement that framed the development as a positive for the company. It said the employee and customer experience will not change, and employees will continue to get paid.
“Filing for bankruptcy gives our company a unique opportunity to reorganize ourselves in a manner that will make us stronger and more competitive,” Mi Pueblo CEO Juvenal Chávez said in the company's statement. “I want to assure our loyal customers and team members that Mi Pueblo will continue being open for business doing what we do best—serving you and your family.”
The 21-store grocery chain reported that it's current on all its obligations and has not defaulted on any payments, but reached an impasse with its only secured creditor.The company's next step is to submit a reorganization plan will be submitted to the Federal bankruptcy court for consideration and approval.
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