Skip to: Content
Skip to: Site Navigation
Skip to: Search


Belle Foods bankruptcy: Grocery company struggles to pay debt

Belle Foods bankruptcy stems from an inability to pay debts, the Birmingham-based company said Tuesday. Before the Belle Foods bankruptcy, the company announced it would hire 300 part-time workers as a  cost-saving measure.

By Associated Press / July 2, 2013



Birmingham. Ala.

Birmingham-based Belle Foods filed for Chapter 11 bankruptcy protection Monday, saying the company is struggling to pay debt with revenue from its 57 stores throughout the Southeast.

Skip to next paragraph

In April, the company — which once ran Bruno's and Food World stores in the Birmingham area — announced plans to hire 300 part-time workers at its stores in Alabama, Georgia, Florida and Mississippi to replace full-time workers in a cost saving move.

AL.com reported that (http://bit.ly/12ai8oy ) company officials have said a decline in business, technical issues with its accounting system and concerns over its lending structure and relationships all factored into the decision to file for bankruptcy.

"Additionally, higher payroll taxes in 2013 have led to a decline in purchases by the (Belle's) customer base," the filing said. Company officials added that competition in several of its markets from other grocers didn't help the situation either.

According to documents filed in the U.S. Bankruptcy Court for the Northern District of Alabama, the company owes Southern Family Markets $28 million. Belle Foods bought some of its stores from Southern Family Markets. The company owes C&S Wholesale Grocers $6 million, and also has about $8 million due in other accounts payable.

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer

 

Doing Good

 

What happens when ordinary people decide to pay it forward? Extraordinary change...

Endeavor Global, cofounded by Linda Rottenberg (here at the nonprofit’s headquarters in New York), helps entrepreneurs in emerging markets.

Linda Rottenberg helps people pursue dreams – and create thousands of jobs

She's chief executive of Endeavor Global, a nonprofit group that gives a leg up to budding entrepreneurs.

 
 
Become a fan! Follow us! Google+ YouTube See our feeds!