Bashas' announces 10 stores closing in ArizonaPosted: Updated:
PHOENIX - Bashas' grocery store filed bankruptcy protection papers overnight.
Bashas' financial woes
Bashas closing stores; filing for bankruptcy
This comes on the day the president of the grocery chain announced they are closing 10 stores in the state of Arizona, seven of those in the Valley by July 21.
One thousand people are expected to lose their jobs.
Seven out of the 10 Bashas' stores to be closed are in Chandler, Gilbert and Phoenix
Three food city stores, one in Glendale and two in Phoenix, will also close their doors.
Five other Bashas' stores closed earlier this year.
According to legal papers the grocer is $245 million in debt with only about $200 million in assets.
At a press conference on Monday morning, company President Mike Proulx said that a combination of the national credit crisis and slowing growth in Arizona led to the company's decision. That slowing has led to a hyper-competitive state grocery market.
He also blamed ongoing friction with a union trying to organize the company's stores.
Proulx says the company isn't for sale and won't stop operations. He says Bashas' has obtained $45 million secured in loans to fund ongoing operations.
Bashas' has been in business for 77 years and has 150 stores around the state.
The Associated Press contributed to this story.