Alabama grocery conglomerate – Belle Foods – filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code, citing excessive debt and insufficient cash flow as the cause of its financial strain.
The company, which once operated the former Bruno’s and Food World stores, said it was finding it difficult to meet its creditor obligations with revenue from its 57 stores in Alabama, Georgia, Florida, and Mississippi. Belle Foods acquired the stores from Southern Family Markets, the company that took control of a number of Bruno’s and Food World chains, according to AL.com.
As a result of the purchase, Belle Foods still owes Southern Family Markets $4 million for a loan and $24 million in a revolving line of credit. Belle Foods also owes C&S Wholesale Grocers $5.1 million in accounts payable and $900,000 on a pension withdrawal liability note, the news source reports. The company listed $8 million in other accounts payable due.
In its bankruptcy filing with the U.S. Bankruptcy Court for the Northern District of Alabama, the company cited technical difficulties with its accounting system and poor structuring of lending and creditor relationships as contributing factors to its bankruptcy.
“Additionally, higher payroll taxes in 2013 have led to a decline in purchases by the (Belle’s) customer base,” the filing said. “Furthermore, (Belle) has also seen an increased amount of competition in several of its markets from other grocers. With older locations, Debtor has had difficulty competing with the newer grocery stores that have moved into its markets.”
The Associated Press reports that the company attempted to shave costs in April by hiring 300 part-time workers to replace full-time staff. However, 34 percent of the company’s workforce is full-time, and a large percentage are union workers, who have collective bargaining agreements with United Food and Commercial Workers 1996 and 1529 and the Retail, Wholesale and Department Store Union.
Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?
Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]
“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
The Screenshot Problem: Why Nothing Is Really Private Anymore
Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
No Aspect of the advertisement has been approved by the Supreme Court.
Results may vary depending on your particular facts and legal
circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
