Carter's Files for Chap. 7 Bankruptcy
CHARLOTTE, Mich. -- Putting an end to weeks of speculation, Carter's Food Centers here last week filed for Chapter 7 bankruptcy.
In its filing in U.S. Bankruptcy Court for the Western District of Michigan, Carter's cited "serious financial difficulties" amid acknowledging it had received utility shut-off notices.
The company, which operates 14 stores in the state, said it was unable to meet financial obligations to Nash Finch Co., its Minneapolis-based food distributor, which ceased deliveries to the stores in recent weeks. Nash Finch previously said it would take a charge of up to $8.5 million to reflect the obligations of an unidentified customer.
In late June, a U.S. District Judge ruled Carter's Foods was liable for $940,916 in unpaid invoices owned to Grand Rapids-based produce supplier J.A. Besteman Co. dating back to 2003.
In its filing in U.S. Bankruptcy Court for the Western District of Michigan, Carter's cited "serious financial difficulties" amid acknowledging it had received utility shut-off notices.
The company, which operates 14 stores in the state, said it was unable to meet financial obligations to Nash Finch Co., its Minneapolis-based food distributor, which ceased deliveries to the stores in recent weeks. Nash Finch previously said it would take a charge of up to $8.5 million to reflect the obligations of an unidentified customer.
In late June, a U.S. District Judge ruled Carter's Foods was liable for $940,916 in unpaid invoices owned to Grand Rapids-based produce supplier J.A. Besteman Co. dating back to 2003.