Dahl's Foods Files Chapter 11

Nov 10, 2014

Dahl’s Foods is filing for Chapter 11 bankruptcy.

The Des Moines-based grocery store chain will not liquidate, but rather reorganize. As part of that reorganization, Kansas City-based Associated Wholesale Grocers Inc. (AWG) will buy Dahl’s operating assets.

In a press release, Dahl's CEO Craig Moore cites a need of capital to keep the chain afloat. 

According its website, AWG owns 2,900 retail outlets nationwide. AWG's president and CEO Jerry Garland says the Dahl's stores will be remodeled and updated.

Drake University Law School bankruptcy professor Matthew Doré says Dahl’s costumers likely won’t notice many differences with the change in ownership.

"Costumers might just see a different brand name on the door or something like that," says Doré. "The higher management might not stay the same, but...the store-to-store [employees] would likely stay in place, or many of them would."

As of now AWG plans to keep all 11 Dahl’s locations open.  Earlier this year Dahl's closed stores in Ankeny, Ames and West Des Moines.