A BELOVED grocery chain has filed for bankruptcy after 50 years, which has left just one location left.
As big box chains put more pressure on smaller businesses, one has been forced to make the ultimate decision.
A beloved grocery chain has filed for bankruptcy after 50 years, which has left just one location left[/caption]
Family owned Stewart’s Food Stores, first opened in 1975, about 55 miles south of Houston, Texas, has been forced to file for bankruptcy.
The chain filed for Chapter 11 bankruptcy with U.S. Bankruptcy Court for the Southern District of Texas on July 11.
The filing stated that Stewart’s Food Stores is claiming between $10 million and $50 million in assets.
It is also claiming between $1 million and $10 million in liabilities.
The chain is completely family owned, it was founded and operated by Verne Stewart, and following his death, is now run by his son Dwain.
Dwain has spoken out about the filing, and has signalled that customers need to do their part to support the store’s last remaining location.
This statement followed the closure of a store located in Sweeny, about 65 miles south of Houston.
He said: “We understand this is difficult news for our community, and we share in the sadness of this closure.
“As we move forward, we encourage everyone to visit our Brazoria store.
“We hope the Sweeny Community knows how deeply we have appreciated being part of their lives.”
Just two years before the Sweeny closure, Stewart’s invested in a meat processing facility at the location.
Brazoria County is located in the Gulf Coast region of Texas, and the store can be found on 102 E San Bernard St.
BIG BOX PRESSURE
It has been said by Dwain’s son Shane that the pressure from big box stores like Dollar General have put too much pressure on chains like Stewart’s.
In another report following the Sweeny closure, Shane criticized the bigger chains for taking over the industry.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
He said of his father’s efforts: “In a world of convenience, online ordering and big box retailers, his job is harder than ever.
“But he kept his doors open, working endlessly during hurricanes to keep items on the shelves for his friends and family — his customers.
“He has always taught us that the value of a person is limitless, that a man is only as good as his word — when you have nothing left, you will always maintain your promises.”
And sister Jackie Stewart told The Facts about Dwain: “He donates to local churches, Little League, schools and any persons in need.
“He is often found down the ice cream aisle giving out Blue Bell ice cream to kids.
“He loves to see smiles on the kids’ faces.”
