Dahl’s Foods Inc. Files for 41 Million Dollar Bankruptcy
DES MOINES, IA – Dahl’s Foods Inc. has filed a $41 million bankruptcy petition in federal court asking to be allowed to reorganize and sell its stores.
The Des Moines Register reports that Kansas City-based Associated Wholesale Grocers Inc. (AWG) plans to purchase Dahl’s assets and rebrand the stores. According to the court filings, AWG has offered to purchase the 10-store chain’s assets for $4.8 million, which could be adjusted based on the value of inventory.
AWG CEO Jerry Garland said in a statement, “Our intentions for entering into the agreement to purchase Dahl's Foods are to provide an opportunity for a member of our cooperative to successfully enter the Des Moines grocery market, with some good locations, and to gain a strong and experienced workforce.”
The Register reports that Dahl’s currently has over 950 employees and had $136.8 million in sales during the 12 months ending June 28. In the court documents, the retailer stated that its sales declined because of increased competition and the company was “slow to recognize the competitive threat and to make the operational changes necessary to remain viable.”
"Our board has approved the sale of the company, which will ensure that the stores come out of this stage successfully. Right now, our focus is on preserving our workforce and continuing to provide a competitive and connected store experience for customers," Craig Moore, Dahl's CEO, told KCCI News.
Dahl’s stores are expected to remain open and operate as normal through the process with no interruptions in service to customers.
Stay tuned to AndNowUKnow as we continue to follow this bankruptcy and sale.
