Cos. and its subsidiaries filed Chapter 11 bankruptcy April
1 in the U.S. Bankruptcy Court in Wilmington, DE, the company
announced in a release the same day.
grocery store supplier lost an estimated $4.5 million in
business from Kmart after the bankrupt department store chain
ended a major supply agreement with Fleming in January. Kmart
accounted for 20 percent of Fleming's business.
this backdrop, it became clear that filing for Chapter 11
was the only choice that would allow us to continue operating
as a going concern, with renewed trade credit support, while
negotiating with our creditors toward an adjustment in our
debt level that would be more consistent with our operations,
assets and current business model,” Peter Willmott, Fleming's
interim president and chief executive officer, said in the
says it intends to use the Chapter 11 process to restructure
its business operations and finances; to establish an improved
capital and cost structure; and to position itself for long-term
success upon emergence from Chapter 11.
is open and conducting business at all of its facilities.
The company is negotiating with its lenders on the terms
of debtor-in-possession financing and expects to announce
further progress shortly. Additionally, the company said
it continued to receive supplies and service its customers.
has filed a variety of "first day motions" to support
its associates, customers and vendors. In addition to the
motions cited above, the company is seeking court approvals
for continuation of payments for employee health and other
benefits; cash management programs; and for legal, financial
and other professionals to support the company's reorganization.
who provided goods or services to Fleming or its subsidiaries
before the bankruptcy filing may have pre-petition claims,
which will be frozen pending court authorization of payment
or consummation of a reorganization plan.
Rene Tankersley, feature editor
Tankersley may be reached at email@example.com.