Bruno's Supermarkets LLC has notified Alabama state officials that it could close all its stores and lay off employees at the end of May, reinforcing the company's position that it will go out of business if it can't sell itself before it runs out of borrowed money.
The first notice, applying to 30 employees at the Saraland Food World, has been posted on the Alabama Department of Community and Economic Affairs Web site that lists upcoming closures and layoffs that trigger the state's rapid response team or the federal Worker Adjustment and Retraining Notification Act.
ADECA officials confirmed by telephone today that they've received notices for most or all of the company's 34 Food Worlds and 21 Bruno's in Alabama.
The company had already announced plans to close 10 stores, including the Fairhope Food World location. Bruno's would have six remaining Food World stores and seven Bruno's in southwest Alabama.
Bruno's also sent notices to Florida that it could close the two Bruno's and five Food Worlds that it operates in the Pensacola and Fort Walton Beach areas.
Also today, BI-LO LLC, another grocery chain controlled by Lone Star Funds, filed for Chapter 11 bankruptcy reorganization in South Carolina. The company cited assets and debts between $500 million and $1 billion.
Bruno's and BI-LO, based in Mauldin, S.C., had been merged, but Lone Star de-merged the two, recreating separate management for Bruno's. BI-LO said in its filing that it had loans of up to $360 million due Thursday, and that lenders had refused to extend the due date for $260 million of that amount.
(For more information, read Tuesday's Press-Register.)