A day after Earth Fare announced it will close all of its stores, the North Carolina-based supermarket company filed for bankruptcy.
The Asheville grocery chain, which sells organic and natural foods, on Tuesday filed for Chapter 11 bankruptcy reorganization protection in U.S. Bankruptcy Court in Wilmington, Del. It listed liabilities of $100 million to $500 million and assets of $100 million to $500 million.
The filing says a restructuring committee was formed in November to "explore and evaluate the company's potential strategic alternatives, including the company's restructuring, reorganization, or sale." Company officers may "enter into negotiation with any interested parties regarding a purchase of any or all of the assets of the company," the filing states.
An Earth Fare spokesperson was not immediately available for comment.
On Monday, Earth Fare cited challenges in the retail industry in announcing the store closures. All stores are expected to close by the end of February.
Earth Fare operates in 10 states, including the Carolinas, Alabama, Georgia, Michigan, Ohio, Tennessee, Florida, Indiana and Virginia.
It has 13 North Carolina sites, including two stores in south Charlotte and one in Steele Creek. Earth Fare also has stores in Huntersville, Concord, Raleigh, Morrisville, Fort Mill, S.C., and Rock Hill.
On Tuesday, customers at an Earth Fare in Huntersville said the store was packed with people filling as many as two to three grocery carts.
The closing sales started Monday. Eeach store will close once its inventory is sold out, company spokeswoman Jennifer Mercer told the Observer.
Earth Fare has about 3,000 employees, including 900 in North Carolina.
Earth Fares' demise comes amid a highly competitive grocery store competition in the Charlotte area.
The number of grocery stores in the metro area has grown by 38% in five years, according to sales-tracking firm Chain Store Guide. And experts told industry publication GroceryDive.com that Charlotte is one of the top four markets in the country to watch this year.
