Recently in food Category

This one's not recession related, but it is interesting: Jolt Cola filed for bankruptcy protection after experiencing problems sourcing new packaging. Jolt ordered 90 million "23.5 ounce resealable cans" from a supplier but has received just 30 percent of its order. The lack of supply forced Jolt to make alternate accommodations, and the resulting moves created a capital crunch that the company doubts it can fix.

No word yet on whether this will have any impact on Jolt's operations, although the lack of packaging would suggest Jolt becomes harder to find in the coming months.

The economic downturn is hitting local stores especially hard. Saddest among those affected are the decades-old establishments suddenly facing bankruptcy or liquidation. Recent news affects regional chains with long histories:

• Colegate Food Center in Marietta, Ohio, is closing up shop after 52 years in business. "We're not closing because we want to be closing," said owner Glen Antill, who has been working at Colegate since 1955, two years before it turned into a supermarket.
• Next Friday is the last day for Crocodile Pie, the 20-year-old children's bookstore in the Chicago suburbs. The store was bought in a rescue maneuver last year but sometimes fails to generate as much as $100 in sales in a day. Chicago's 35-year-old Prairie Avenue Architecture Bookstore is also closing if it fails to find a buyer by September 1.
• In Grand Junction, Colorado, Appleseed Health Foods is closing after a 31-year run. The official reason is the owner's retirement, although the store tried to sell itself for two years without success.
  

Beleaguered southwestern grocer Bashas' filed for Chapter 11 bankruptcy protection Sunday night in an attempt to continue operations. The company announced 10 new store closings alongside the filing. Bashas' owns the Food City and AJ's Fine Foods chains in addition to its namesake, a total of 158 stores.

Bashas' made headlines less than two weeks ago with several store closings. The chain first began closing locations in February in an effort to improve profitability.

Two beleaguered grocery store chains, Bashas' and Bruno's are in the news this week following earlier store closing and bankruptcy announcements. The chains first appeared in Timely Demise together in February.

Bashas' is closing at least two more locations as it continues a lengthy restructuring. The chain, which previously had announced five store closings, is being criticized for dragging out the process.

In better news, Bruno's new owner is rapidly reopening stores, having remodeled dozens of locations in the past few weeks. The renewed Bruno's chain has 31 doors and a new pricing structure for its products.

Southern restaurant chain Whataburger is closing 14 of its Florida locations due to the spending slump. Whataburger, which has more than 700 outlets across the southern states, is closing its company-owned Florida stores while franchised locations remain open. The 14 affected stores all closed for good May 31.

Supermarket chain Albertsons is announcing a shift in prices to retain customers who have been shopping at discount stores. The program, called the Big Relief Price Cut, lowers prices throughout the store at 222 Albertsons locations in California. The move is designed not only to counter the discounters, but to keep up with competitors like Vons and Ralphs, who have already moved to push prices down.

(As an aside, what's with the California grocery scene that no one uses apostrophes? Albertsons, Vons, Ralphs--can't anyone use the possessive anymore?)

Five of the six Ethel's Chocolate Lounges are closing by the end of April. The high-end chocolate store and "hangout," an experiment from confectionary giant Mars Inc., has been operating in the Chicago area since 2006. Ethel's chocolates will continue to be available online, and its eight Las Vegas stores remain open.

In New York, old-world gourmet retailer Balducci's is closing both its locations by the end of April. The grocery store, which dates back 63 years to the Greenwich Village, gave up its original location in 2003. Balducci's has since expanded to eight locations throught the northeast, none of which have been reported as slated to close.

Chocolatier Lindt & Sprüngli is closing 50 of its 80 U.S. retail outlets in reaction to a sales downturn. The company, which sells Lindt chocolates and also owns Ghirardelli, is moving to a mall-based retail plan. Lindt's woes do not match those of the greater chocolate industry; competitors such as Nestle are doing well in the current market.

Southern grocery chain BI-LO Supermarkets filed for bankruptcy with nearly $1 billion in outstanding debt. The company has 215 stores across the Carolinas, Georgia and Tennessee. BI-LO expects to continue operating during bankruptcy proceedings. BI-LO spinoff Bruno's also filed for bankruptcy earlier this year.

Meadowbrook Farms, a cooperative of more than 200 family hog farm members who used a central processing plant in Illinois, has filed for chapter 7 bankruptcy. The cooperative owed its members money, having had a cash crunch shortfall because of a large default by a purchaser.

Here's a fascinating side effect of bankruptcy filings--we get to learn the semi-interesting names of creditors. From North Carolina:

Raleigh's Carolina Wine Co. left vino lovers across the country with empty glasses when it suddenly shut down this year.

But the company's bankruptcy filing reveals that it had widespread and, in some cases, famous clients.

• Bruno's Supermarkets, which filed for bankruptcy a few weeks ago, has announced plans to close 10 underperforming stores as part of its restructuring.
• The plan to close 50 Supervalu stores (reported previously) is crystallizing, as nine California Albertson's are shutting their doors. Other grocers in the area are forcing job cuts which will lead to reduced service.
• And while it's not yet official, embattled niche grocer Whole Foods is considering closing stores to help profitability, a move it was previously unwilling to entertain.
  

In the wake of the Peanut Corporation of America scandal, snack bar manufacturer Forward Foods filed for bankruptcy. Forward, which makes Detour energy bars, is suffering from the extensive peanut recall. The company's private-equity owners have lined up financing to continue operations during the bankruptcy restructuring.

Not economy-related, but certainly retail-affecting, the Peanut Corporation of America filed for bankruptcy protection on Saturday. The company is under extreme pressure following salmonella outbreaks traced to unclean conditions at more than one of its factories. Sales of peanut-based grocery products are down as much as 28% in the wake of the health scare.