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CHARLOTTE, Mich. -- Putting an end to weeks of speculation, Carter's Food Centers here last week filed for Chapter 7 bankruptcy.
In its filing in U.S. Bankruptcy Court for the Western District of Michigan, Carter's cited "serious financial difficulties" amid acknowledging it had received utility shut-off notices.
The company, which operates 14 stores in the state, said it was unable to meet financial obligations to Nash Finch Co., its Minneapolis-based food distributor, which ceased deliveries to the stores in recent weeks. Nash Finch previously said it would take a charge of up to $8.5 million to reflect the obligations of an unidentified customer.
In late June, a U.S. District Judge ruled Carter's Foods was liable for $940,916 in unpaid invoices owned to Grand Rapids-based produce supplier J.A. Besteman Co. dating back to 2003.