Birmingham-based Belle Foods has filed for Chapter 11 bankruptcy protection.
The announcement was made Monday (July 1st, 2013).
The company which once ran Bruno’s and Food World stores in the Birmingham area – said that it’s struggling to pay its debts with the revenue from its 57 stores spread across the southeast.
In April the company announced plans to hire 300 part-time workers to replace full-time workers in an attempt to cut down on costs; company officials have cited a decline in business, technical issues with its accounting system and concerns over its lending structure as factors leading up to the decision to file for bankruptcy.
According to documents filed in the U.S. Bankruptcy Court for the Northern District of Alabama the company currently owes Southern Family Markets $28 million – with $6 million outstanding to C&S Wholesale Grocers – that, in addition to approximately $8 million due in other accounts payable.