Mi Pueblo Food Centers has successfully emerged from Chapter 11 bankruptcy after a $56 million investment infusion from Victory Park Capital, a Chicago-based private-equity firm which focuses on niche credit and distressed companies. The financial reorganization also brought new corporate leadership, as Javier Ramirez was named President and CEO, succeeding company founder Juvenal Chavez who has been named Chairman of the Board. According to the company, Mr. Ramirez has nearly 20 years of experience and is a seasoned CEO in the Hispanic food and grocery sector.
As recently as April of this year, Mi Pueblo was considering liquidation. The company cited a difficult dispute with Wells Fargo, its primary creditor, as well as a decline in store traffic. Following its bankruptcy last July, an audit of the chains employees by the Immigration and Customs Enforcement service resulted in an 80% reduction of the company workforce.
The company has forged ahead with its deep Hispanic roots dating back to 1991 and a loyal customer base, and will now look to emerge as a stronger company. In a formal statement, Ramirez stated that the future plans for Mi Pueblo will focus on “enhancing the company’s authentic Hispanic product offering, improving customer service levels and ensuring products are sold at fair and competitive prices.’’ In addition, all 21 Northern California stores will remain open.
Mi Pueblo’s largest market by stores is the San Jose core-based statistical area, where its eight area locations had a 3.7% grocery market share in fiscal 2013.
SAN JOSE-SUNNYVALE-SANTA CLARA, CA
Metro CBSA
| Company Name |
Area Stores |
Current Area Grocery Market Share |
| Safeway Inc.: PLEASANTON, CA |
36 |
24.50% |
| Costco Wholesale Corp.: ISSAQUAH, WA |
7 |
18.10% |
| Save Mart Supermarkets: MODESTO, CA |
23 |
11.70% |
| Trader Joe’s Co.: MONROVIA, CA |
11 |
7.40% |
| Walmart Stores Inc.: BENTONVILLE, AR |
5 |
5.60% |
| Raley’s Family of Fine Stores: WEST SACRAMENTO, CA |
9 |
5.50% |
| Whole Foods Market Inc.: AUSTIN, TX |
6 |
5.30% |
| Mi Pueblo Food Center: SAN JOSE, CA |
8 |
3.70% |
| Target Corporation: MINNEAPOLIS, MN |
13 |
2.20% |
| Smart & Final Stores LLC: COMMERCE, CA |
9 |
2.00% |
| Lunardi’s Supermarkets Inc.: SOUTH SAN FRANCISCO, CA |
3 |
1.80% |
| Sprouts Farmers Markets: PHOENIX, AZ |
4 |
1.50% |
| Grocery Outlet Inc.: BERKELEY, CA |
8 |
1.40% |
| Tawa Supermarkets Inc.: BUENA PARK, CA |
5 |
1.20% |
| Walmart Neighborhood Market: BENTONVILLE, AR |
2 |
0.80% |
| Long Champ Corp.: MILPITAS, CA |
5 |
0.80% |
| Fresh & Easy Neighborhood Market: EL SEGUNDO, CA |
4 |
0.70% |
| Renwood Andronico Lending LLC: SAN LEANDRO, CA |
1 |
0.60% |
| The Fresh Market Inc.: GREENSBORO, NC |
2 |
0.50% |
| Albeco Inc.: MILL VALLEY, CA |
1 |
0.40% |
| Seafood City Supermarket: POMONA, CA |
2 |
0.40% |
| Tropicano Russell Inc.: CUPERTINO, CA |
1 |
0.40% |
| Hollister Supermarkets Inc.: SAN JUAN BAUTISTA, CA |
3 |
0.40% |
| Other operations |
58 |
3.00% |
*Source: Chain Store Guide 2014 Grocery Industry Market Share Report
