Pro’s Ranch Markets, a family-owned chain of Hispanic-themed grocery stores that has operated in Arizona for 11 years and was twice named Arizona Retailer of the Year, has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
“We made this important move to improve the overall health of the company and save the jobs of more than 2,200 team members,” said Rick Provenzano, COO of Pro’s Ranch Markets, which also operates stores in Texas and New Mexico. “We are and have always been a family business. This opportunity to restructure our business will result in a stronger and more stable company for years to come.”
According to CFO Michael Provenzano, Jr., the grocer’s revenues were hurt by the lingering recession, and this is only a temporary setback. “We have been in business for over 30 years and we are confident that our family of stores will be in business for another 30 years,” he said. “This reorganization will put us back on a more firm financial footing. We do not plan to sell or close any stores, and our shelves are fully stocked. We’ve had the honor and privilege of being in business since 1982, and we’re committed to continuing to provide our customers with great products at low prices, and taking care of our vendors and our employees and their families.”
Pro’s Ranch Markets has obtained a loan commitment for $3 million to continue operations during the reorganization, Provenzano, Jr. said. “The company’s short-term plan is to emerge from Chapter 11 as soon as possible, and over the next few months we will be laying out our long-term strategy to ensure success.”
Pro’s Ranch Markets was founded 31 years ago by Mike Provenzano, Sr. Since then, it has grown to 11 stores in three states, including seven stores in Arizona, two in New Mexico and two in Texas. The company was named Arizona Retailer of the Year in 2004 and 2012 by the Arizona Food Marketing Alliance.
The grocer has hired Phoenix-based HG Capital Partners as its restructure advisor, led by managing partner Jim Ameduri.
More information about Pro's Ranch Markets' reorganization is available online.