The Phoenix Business Journal reports this morning that bankrupt Bashas’ Supermarkets wants to close 14 stores as part of its restructuring efforts, which will be in addition to the 15 other stores already slated for closing.
According to the story, Bashas’ needs court approvals in order to void the leases for the stores.
The journal writes that “Bashas’ officials have been examining company operations from top to bottom and identified these locations for a variety of reasons, including low sales volume, not performing up to expectations and the cost of maintaining the locations … In addition, some of the stores are operating in areas previously identified as new growth areas, but the housing meltdown has significantly slowed housing development there.”
According to the story, Bashas’ needs court approvals in order to void the leases for the stores.
The journal writes that “Bashas’ officials have been examining company operations from top to bottom and identified these locations for a variety of reasons, including low sales volume, not performing up to expectations and the cost of maintaining the locations … In addition, some of the stores are operating in areas previously identified as new growth areas, but the housing meltdown has significantly slowed housing development there.”
- KC's View:
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It is clear that Bashas’ isn’t going to be the same company when it finally emerges from bankruptcy, which I guess is the ultimate point.
But the question – which hasn’t yet been answered, and won’t be for some time – is whether what remains at the end of the process will be a viable and differentiated company that will retain whatever brand equity it had in the marketplace.
