07/24/2013 03:27 pm ET

Mi Pueblo Supermarket Chain Files For Chapter 11 Bankruptcy


Mi Pueblo, the festive Bay Area supermarket chain and icon of family-grown Hispanic businesses, filed for Chapter 11 bankruptcy protection Monday, citing a dispute with its primary lender, Wells Fargo.

Mi Pueblo said it would keep all 21 stores open and would use the bankruptcy as a chance to reorganize the 22-year-old grocery chain, which started as a small immigrant-run shop in East San Jose and has grown to a 3,260-employee supermarket corporation.

"It's not an issue with payroll and it's not an issue with sales," said spokeswoman Perla Rodriguez. "Mi Pueblo is dealing with a very difficult creditor. We're at an impasse and we're seeking protection from the court."

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