Albuquerque Journal (Albuquerque, NM)

Furrs Files Chapter 11.

Byline: Diane Velasco Journal Staff Writer

New Store Construction Halted, But No Layoffs Expected

Furrs Supermarkets Inc. filed for Chapter 11 bankruptcy protection Thursday, after a year of denying any serious financial problems despite repeated reports of unstocked shelves and delayed payments to vendors.

The company said Thursday that the filing won't result in any layoffs.

But two new stores under construction, one on Albuquerque's West Side and one in Corrales, have been put on hold, President and CEO Thomas Dahlen told the Journal in an interview. Those two stores had been slated to open by the end of March.

All other aspects of the business will go on as before "except that now we expect to have sufficient funds that will allow us over the next few weeks to fully stock our shelves and improve store conditions," Dahlen said.

"While this was a difficult decision for us to make, it was an absolutely necessary one," he said.

The filing will allow the grocer to reorganize while protected from its creditors. …

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