Belle Foods, the operator of former Bruno’s and Food World stores, filed for chapter 11 protection yesterday citing difficulties paying creditors with the revenues from its 57 stores in Alabama, Georgia, Florida, and Mississippi, the Birmingham (Ala.) News reported today. In June 2012, Birmingham-based Belle Foods purchased the stores from Southern Family Markets, a company that took control of a number of Bruno’s and Food World stores after the bankruptcy of what had been a Birmingham grocery titan for much of the last century. According to court documents, Belle Foods owes Southern Family Markets $28 million—$4 million for a loan and $24 million in a revolving line of credit. Belle Foods also owes C&S Wholesale Grocers $6 million—$5.1 in accounts payable and $900,000 on a pension withdrawal liability note. Belle Foods also has around $8 million in other accounts payable due.
