New York-based Seasons Kosher Supermarkets voluntarily filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on Sept. 21, 2018. Media reports said the kosher grocery store has a debt of $42 million that it owes vendors, landlords and banks, while it has only $5 million in assets.
In a statement, the company said, “Through a commitment of up to $6 million in private funding we will be able to fully stock the shelves, fulfill current vendor obligations and continue to operate normally during the restructuring period.”
The company hopes to emerge with a stronger balance sheet and be able to fully restore operations. Recently, several companies such as Tops Markets and Southeastern Grocers have successfully filed for Chapter 11, which has helped reduce debt and strengthen their business.
“There is nothing we love more than providing Seasons’ family with the warmest kosher shopping experience, and we look forward to refocusing on that singular goal,” said Mayer Gold, CEO Seasons.