Struggling from the fallout of federal immigration audits, two Southwest grocery-store chains have filed for bankruptcy protection with plans to reorganize, the Wall Street Journal reported on Saturday. California’s Mi Pueblo grocery store operator filed for chapter 11 protection on July 22 after the 21-store chain was told to replace some of its 3,260 workers whose documentation came under review during a U.S. Immigration and Customs Enforcement audit, according to court papers filed with the U.S. Bankruptcy Court in San Jose, Calif. The chain—which stocks its shelves with imported foods from Mexico, South America and other countries for its primarily Hispanic customers—said in court papers that the federal audit led the company to struggle with higher payroll costs and training expenses as new workers have been brought on board, said bankruptcy attorney Robert Harris in court documents. The stores sell fresh tortillas, marinated cuts of meat and specialty cheeses from throughout Central and South America. That filing comes after executives at Pro’s Ranch Market put the company’s 11 stores, which employ about 2,235 workers and are mostly located in Arizona, under bankruptcy protection in May.
