food: February 2009 Archives

• 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.

Retailers selling food, typically among the lowest-margin businesses in the nation, are suffering as much as anyone in the rough economy. Some regional stories of note:

• Bashas', an independent supermarket chain in Arizona, is closing five locations to focus on more profitable locations. The company is also the subject of a federal discrimination investigation regarding its Hispanic employees.
  
• Ike's Farmer's Market, a related store from Bashas, is closing as well, a failed attempt to counter the natural foods movement established by Whole Foods (who itself is enduring a difficult year).
  
• Bruno's Supermarkets in Alabama filed for Chapter 11 bankruptcy this week. The company anticipates no change in store operations during its restructuring.