Bay Area’s Mi Pueblo grocery store chain filed for federal Chapter 11 bankruptcy protection Monday, store officials announced.
The 21-store chain said it was current on all its financial obligations but has “reached an impasse with its only secured creditor.”
“Filing for bankruptcy gives our company a unique opportunity to reorganize ourselves in a manner that will make us stronger and more competitive,” said Mi Pueblo CEO Juvenal Chávez. “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 company said employees were told that their paycheck remained secure and that all the stores would remain open.
“We are doing everything we can to ensure Mi Pueblo is here for generations to come,” Chávez said.
Mi Pueblo operates stores in the Bay Area, Monterey Peninsula and Central Valley.
Watchdogs are questioning an exclusive agreement between the City of Oakland and a non-profit group, tapped to lead a multi-million dollar project to redevelop the area around the Coliseum BART station.