Midwestern grocery cooperative Central Grocers Inc. is facing involuntary bankruptcy as creditors are lining up, looking to be paid for past-due bills.
The Coca-Cola Co., General Mills Inc., Mars Financial Services and Post Consumer Brands have filed for a Chapter 7 involuntary bankruptcy of Central Grocers in pursuit of debt payments, the Northwest Indiana Times reported.
In a Chapter 7 bankruptcy, the court would appoint a trustee to sell off assets to repay creditors.
The cash-strapped supplier of independent grocery stores has already been looking for a buyer for its 22 Strack & Van Til supermarkets in metro Chicago and northwest Indiana, as well as the massive warehouse at its Joliet, Ill., headquarters. Strack & Van Til is also closing nine Ultra Foods-bannered stores in the Chicago area.