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Regional independent Bashas’, Inc. is leveraging tools available under the U.S. Bankruptcy Code to get out from under real estate leases that are costing the company millions of dollars a year.
According to published reports, Chandler, Ariz.-based Bashas’, which filed for Chapter 11 protection July 12, is looking to void leases at a Phoenix office building and at 14 shopping centers around the state. The leases are for stores and office space the company has vacated but must continue payments for under terms of the contacts, one such contact costing the grocer $420,000 a year on a closed Food City store.
Bashas’ has asked to break leases at the seven Bashas’ and three Food City stores it said it would close when it filed for bankruptcy protection. It’s also looking to terminate leases at two Food City stores, a Bashas’ and a Sportsman’s Fine Wines & Spirits store that closed earlier in the year.
U.S. Bankruptcy Court Judge James Marlar will consider the request at a hearing Wednesday.