While the economic recession has hit American consumers the hardest, small businesses and major corporations aren’t exempt from financial struggles. One of the largest southeastern grocery chains revealed in a recent announcement that it is filing for chapter 11 protection with the help of a bankruptcy attorney. Belle Foods, which is based in Birmingham, Alabama, is seeking protection through chapter 11 to deal with its overwhelming debt. Belle Foods currently operates 57 different store locations throughout the Southeast.
Belle Foods Files for Chapter 11 Bankruptcy
As early as April 2013, Belle Foods understood that its financial struggles could potentially lead to a chapter 11 filing. The grocery store made a move to hire 300 part-time employees for its stores in Alabama, Georgia, Mississippi, and Florida. The move was part of a larger effort by the grocery chain to cut costs and save money.
Despite its best efforts, Belle Foods has sought the guidance of a bankruptcy attorney to deal with declining business, technical issues, and concerns surrounding the state of the economy. It was all of these factors, not one specific incident, that lead Belle Foods to begin meeting with a bankruptcy attorney to file for Chapter 11. Additionally, new tax codes in 2013 that have led to higher payroll taxes have affected the company’s profits.
Through its chapter 11 filing, Belle Foods will remain in operation and try to change its current financial projection. When it filed through its bankruptcy attorney, Belle Foods revealed that its company, Southern Family Markets, is worth $28 million, and that C&S Wholesale Grocers is worth approximately $6 million. As the company moves forward with its chapter 11 filing, with the help of its bankruptcy attorney, all eyes will be on its performance in the coming months. Will better money management, a bankruptcy attorney, and chapter 11 be enough to save this major southeastern grocery chain?