2 More Farmers Markets File for Bankruptcy
Two more stores in the upscale but financially ailing Irvine Ranch Farmers Market chain have filed for protection from creditors under federal bankruptcy laws.
The latest stores to file for Chapter 11 protection--in Irvine and Woodland Hills--are jointly owned by the Costa Mesa chain and by investor groups and so were not included when the chain filed for bankruptcy protection in July. Two other stores, one in San Diego and one in Texas, are wholly owned by private developers and have not filed for protection from creditors.
For the record:
12:00 a.m. Sept. 30, 1988 Correction
Los Angeles Times Friday September 30, 1988 Orange County Edition Business Part 4 Page 6 Column 2 Financial Desk 2 inches; 36 words Type of Material: Correction
A story in Thursday’s business section incorrectly stated that an Irvine Ranch Farmer’s Market grocery store in Woodland Hills was closed soon after the company filed for bankruptcy in late July. In fact, the Woodland Hills store is still open for business.
Irvine Ranch’s attorney said the Woodland Hills and Irvine stores filed under Chapter 11 of the bankruptcy laws to protect the stores from eviction notices filed by their landlords after they fell behind on lease payments.
The Irvine store, located at Walnut Avenue and Culver Drive, remains open for business. The Woodland Hills store closed its doors shortly after the Irvine Ranch chain filed for Chapter 11 protection.
Since the chain’s financial problems were disclosed, sales revenue has dropped about 20% from year-ago levels, according to sources close to the chain.
Recently, an investment group headed by HLHZ Capital of Los Angeles and Daniel Bobroff, owner of the Chalet Gourmet grocery store in Los Angeles, agreed to pump more than $2.6 million into the Irvine Ranch Market chain in exchange for a controlling majority interest and control of operations and management.
