Our Escondido readers probably know that smart business leaders often land upon an idea to match the right product with the right consumer, and the result is continuous or even increasing profit. For a small grocery store chain founded in California, known as Pro's Ranch Markets, that idea was to market Latin American food products throughout the Southwest, with stores in Texas, New Mexico and Arizona.
With a burgeoning Latin American population in that area of the country, it would seem that this idea was a no-brainer. However, despite the good idea, it appears that some bad financial luck has set upon the grocery store chain. As a result, the company's leaders recently decided to file for Chapter 11 bankruptcy.
According to the reports, the company's Chapter 11 filing shows assets between $1 million to $10 million and liabilities somewhere between $10 million to $50 million. After the filing, company representatives sought to reassure both employees and customers that, at least in the immediate aftermath of the filing, there will be no changes to store operations at the chain's 11 locations. Readers familiar with previous posts here know that this is one of the crucial benefits of a Chapter 11 bankruptcy, in that it allows a company to keep striving toward profitability as changes are made through the bankruptcy process.
Interestingly enough, the company has also indicated that some of the laws being passed throughout the country, and particularly in Arizona, are perceived as anti-Hispanic and therefore are hurting business operations. One change the store could be trying to implement may be coming up with a strategy to deal with these new laws, just as many companies before have had to change with government regulations.
Source: azcentral.com, "Pro's Ranch Markets files for Chapter 11 bankruptcy," Brandon Brown, May 31, 2013