Eagle Needs Help to Keep Flying
By George Anderson
Reuters reports Eagle Food Centers has filed for Chapter 11 bankruptcy protection
citing an inability “to compete effectively with larger, more cost-efficient
food retailers.”
“Quite simply, our size combined with labor costs that are among the highest
in our industry makes it difficult to compete with the low-cost operators in
our markets,” Chief Executive Robert Kelly said in a press statement. “Our cash
constraints have made it increasingly difficult to service the company’s high-yield
debt obligations.”
Eagle operates 61 stores in Illinois and Iowa including 60 Eagle Country Markets
and one Bogo’s Food and Deals.
Moderator’s Comment: What do you expect to happen to
Eagle Food Centers?
The company has certainly sent up the white flag. Its
hard for us to imagine the chain coming out of Chapter 11 and standing on its
own. [George
Anderson – Moderator]