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Thursday, May 30, 2013
Phoenix, Az-based Pro’s Ranch Markets filed for Chapter 11 bankruptcy protection in the District of Arizona on May 28, 2013, according to documents filed with the court. The company anticipates $7,229,772.85 in pre-petition PACA claims from 83 companies.
The company’s bankruptcy involves all of the following affiliate entities:
• PRM Family Holding Company LLC
• Prodigio Mercado LLC
• Pro’s ABQ Ranch Markets LLC
• Pro’s ELP Ranch Markets LLC
• Pro’s ELP Ranch Markets Beverage Company LLC
• Pro & Son’s LLC
• Pro’s Ranch Markets (CA) LLC
• Provenzano’s LLC
Documents filed with the court note that the company has currently estimated current assets to be between $0 to $50,000 and has estimated liabilities to potentially reach $50 million.
“If the Debtor’s Voluntary Petition accurately reflects the amount of assets in the Debtor’s estate, the PACA creditors would be well advised to quickly object to the Debtor’s use of cash collateral and to start working to identify alternative sources of recovery," Attorney at Freeborn & Peters LLP,Jason Klinowski, tells AndNowUKnow. "These alternative recovery sources could include the Debtor’s bank, the principals of the Debtor, etc.”
The company points to a number of factors contributing to the decline in its solvency, including a floundering U.S. economy, the loss of construction and other blue collar jobs in Arizona and New Mexico, the adverse effects of Arizona’s perception of immigrants and Hispanics, increased retail competition, the results of an immigration audit, and Bank of America’s declination to provide further advancements.
Pro’s Ranch Markets operates 11 grocery stores that cater to Hispanic customers: seven in Phoenix, two stores in El Paso, Texas, and two in New Mexico. It also holds an 80,000 square foot corporate office, warehouse and distribution facility in California and a 151,000 square foot warehouse and distribution facility in Phoenix. The low figure in estimated assets, however, suggests that the majority of these properties are leased.
Creditors are urged to take action to file a PACA Trust Claim to ensure capital will be set aside to repay PACA Beneficiaries.