Individuals who are considering bankruptcy as a debt consolidation process may be interested in the story of Colorado grocery chain's recent filing in U.S. Bankruptcy Court in Denver. Bella's Market is seeking to reorganize assets and stave off what the CEO of the company called "an overly aggressive creditor." While the grocery chain may be having financial difficulties, it has reportedly been repaying all of its debts on time.
The company has stores in eight small eastern Colorado towns, plus another store in Kansas. Three of the Colorado stores, located in Wiggins, Akron and Haxtun, plus the Kansas store, will be closing temporarily. The CEO of the company said that all four stores will soon reopen. Stores in Wray, Stratton, Limon, Wellington and Walden will remain in operation, with no employees being let go.
The CEO indicated in a press release that the company has eight stores operating under six different names, plus a ninth store. The company was in the process of changing the names of its stores to the singular Bella's Market.
The Chapter 11 reorganization petition was filed voluntarily and listed the grocery chain's assets at between $1,000,000 and $10 million. Individuals can file Chapter 13, which is also a reorganization bankruptcy, or Chapter 7, which is liquidation. Filing for bankruptcy stops creditor harassment, since creditors cannot move forward without permission from the court. Those who are dealing with aggressive creditors or are going into foreclosure may consider filing for Chapter 13 to reorganize debt or to keep their homes.
Source: Denver Post, "Grocer Bella's Market files for bankruptcy, four stores temporarily closed," Howard Pankratz, Sept. 25, 2012