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The Arizona Republic reports that Bashas’ Inc. is in the process of negotiating with two investment banks for more than $200 million in financing that would, in addition to existing cash reserves, leave it almost debt-free and with enough money to emerge from bankruptcy and compete in the hotly contested Phoenix marketplace.

The company’s fortunes have improved because its sales have improved as it has closed underperforming stores; the improvement of the economy has meant that so-called “exit financing” is available when it might not have been just a few months ago.

Observers say the turnaround in Bashas’ competitive situation has been “remarkable.”
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