On Monday, two California-based Hispanic retailers reached an agreement in U.S. Bankruptcy Court to acquire Phoenix-based Pro's Ranch Markets. The Pro's Ranch Market chain includes seven stores in Arizona, two in New Mexico, and two in Texas.
As we told you in June, the family-owned company filed for Chapter 11 bankruptcy citing both the failing economy and an "adverse, negative, and chilling effect of the perception of the State of Arizona toward immigrants and Hispanics" caused in part by Senate Bill 1070 as the causes of millions of dollars in debt.
See also: Pro's Ranch Markets Files for Chapter 11
Two California Hispanic retailers -- Cardenas Markets and Northgate Gonzalez Markets -- came together to form the separate Cardenas Northgate Group Ranch limited-liability corporation in order to acquire Pro's Ranch Market. The deal was valued at a total of $55 million.
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The new company will take over control of the Pro's Ranch Markets corporate office in Phoenix, as well as a 151,000-square-foot warehouse here in town. Store management and day-to-day operations will be handled by the Northgate team, overseen by a CNG Ranch, LLC Board of Directors, which includes members from both companies.
According to a press release, "for the foreseeable future" all the Pro's Ranch Market stores will stay open. The Cardenas Northgate Group Ranch says it will work with the Pro's management team "to ensure that customers, vendors, and the communities in which the stores serve continue to receive the quality products, fine service and excellent prices that customers have come to expect over the last 31 years."