Judge says Bashas’ can pay vendors, employees

MESA, Ariz. — A federal bankruptcy judge is allowing bankrupt Bashas’ food stores to tap $27.3 million from various accounts to pay wages and benefits earned by employees last week.

At the same time, Judge James Marlar’s order allows the family-owned grocery store chain to keep store shelves stocked by paying suppliers of food and other products.

Bashas’ was also authorized to pay for liquor and tobacco products delivered during last weekend but not paid for by the stores. Completing those transactions will allow Bashas’ to sell those products to retail customers.

The chain announced Monday it had filed for Chapter 11 protection in U.S. Bankruptcy Court.

Bashas’ attorney Michael McGrath said the company hopes to quickly file a reorganization plan with the court, perhaps within a few months. Approval by a judge of that plan would allow the company to exit Chapter 11.

Information from: East Valley Tribune/Scottsdale Tribune, www.eastvalleytribune.com