Mi Pueblo Food Centers here, a 21-store operator, has filed for Chapter 11 bankruptcy protection.
The privately owned company cited a dispute with Wells Fargo, its primary lender, according to local reports. In its bankruptcy petition, Mi Pueblo listed assets totaling between $10 million and $50 million and liabilities in the same range.
The company could not be reached for comment.
Mi Pueblo intends to keep all 21 of its stores open and will use the bankruptcy as an opportunity to reorganize, the local reports said. A chain spokeswoman told a local newspaper, "It's not an issue with payroll, and it's not an issue with sales. Mi Pueblo is dealing with a very difficult creditor. We're at an impasse, and we're seeking protection from the court. We're working very, very hard to reorganize and come out stronger."
Local reports said Well Fargo had sought to change the terms of its loans with Mi Pueblo after the bank became concerned about the chain's debt-to-credit ratio and its forecast on revenues. An attorney for Mi Pueblo told local sources the requests "weren't realistic. They weren't achievable."
