DES MOINES, Iowa – One of the metro’s grocery chains has filed for bankruptcy and is to be sold to a Kansas City company.
Dahl’s Foods says it voluntarily filed for Chapter 11 bankruptcy Sunday in order to restructure.
Stores and operations won’t be affected by the move, Dahl’s said Monday.
According to a press release, the company’s board has approved the sale of the company’s operating assets to Associated Wholesale Grocers.
Jerry Garland, president and CEO of the member-owned wholesale grocery cooperative serving over 3,000 stores nationwide, said Dahl’s stores will be upgraded and rebranded.
“Our intentions for entering into the agreement to purchase Dahl’s Foods are to provide an opportunity for a member of our cooperative to successfully enter the Des Moines grocery market, with some good locations, and to gain a strong and experienced workforce, which is already in the stores,” Garland said.
“We envision that once acquired…the stores will be remodeled and updated, and steps will be taken to build a new brand and identity for the Dahl’s stores, and ultimately the consumers of Des Moines can be provided with a better selection and value in locations which are familiar and staffed by friends and neighbors.”
The company, which was founded in 1931, recently closed stores in Ames, Ankeny and West Des Moines. It currently has 10 stores in operation in the metro.