Iowa-based grocery chain seeks bankruptcy protection

DES MOINES - An 83-year-old Iowa supermarket chain has filed for Chapter 11 bankruptcy protection and agreed to be purchased by a Kansas City, Kan., cooperative.

Dahl Foods of Des Moines on Monday said it filed a voluntary petition for reorganization. The filing will enable the company to obtain necessary financing to complete a restructuring of its business while continuing regular business operations.

Dahl Foods also said it has agreed to be acquired by Associated Wholesale Grocers Inc., a member-owned wholesale grocery cooperative serving more than 3,000 retail member stores nationwide.

The Chapter 11 filing and sale of the company to Associated Wholesale Grocers will not affect the day-to-day operation of Dahl's locations, which will continue to operate as normal during the process.

'As we continue to seek the capital needed to maintain a competitive position within the communities Dahl's serves, this is the best course of action,” said Craig Moore, Dahls Foods chief executive officer in a statement.

'Our board has approved the sale of the company, which will ensure that the stores come out of this stage successfully. Right now, our focus is on preserving our workforce and continuing to provide a competitive and connected store experience for customers.”

Jerry Garland, president and CEO of Associated Wholesale Grocers, said the Dahl Foods stores will be remodeled and updated, and steps will be taken to build a new brand and identity.

Dahl Foods was founded in 1931 by W.T. Dahl. The chain operates 13 stores throughout central Iowa.