Facing challenges in the retail industry and unable to refinance its debt, supermarket chain Earth Fare Inc. has begun closing its roughly 50 stores, becoming at least the third U.S. grocer in recent weeks to seek a buyer or shut down, WSJ Pro Bankruptcy reported. The Asheville, N.C.-based natural and organic goods merchant, which has been backed by private equity firm Oak Hill Capital, said that it is trying to sell its assets. But meanwhile it has alerted employees that it is closing its stores and is holding going-out-of-business sales. Earth Fare, which was founded in 1975 and operates in 10 Southeast, mid-Atlantic and Midwest states, said that its efforts in recent years to expand and to improve customer service haven’t been enough to overcome its problems. Early last year it said it expanded its executive team by hiring a chief medical officer. “While many of these initiatives improved the business, continued challenges in the retail industry impeded the company’s progress as well as its ability to refinance its debt. As a result, Earth Fare is not in a financial position to continue to operate,” the company said. That’s why Earth Fare has started the sale of inventory, as well as store fixtures, while trying to find potential buyers for its stores. Its landlords have included Kite Realty Group Trust and Regency Centers Corp., according to filings in recent months by the real estate businesses with the Securities and Exchange Commission.
