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Marsh files for Chapter 11 bankruptcy

Marsh files for Chapter 11 bankruptcy
Posted at 10:50 AM, May 11, 2017
and last updated 2017-05-11 11:56:55-04

INDIANAPOLIS -- In another blow to the supermarket chain, Marsh has filed for Chapter 11 bankruptcy. 

According to a news release, the 44 remaining locations will continue as normal throughout the bankruptcy process.

"While today's decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale," said CEO Tom O'Boyle. "After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the company's stakeholders."

This week, Marsh announced it would close all locations if it doesn't find a buyer in the next two months. 

PREVIOUS | Marsh Supermarkets could close all locations if no buyer is found

If all stores close, 2,788 part-time and full-time employees would be laid off, a Marsh spokesperson said. 

RELATED | Marsh to close longtime Indianapolis store at the end of January | Marsh is closing another Indianapolis store at the end of February | Marsh to close two more Indy stores by mid-April; that makes four in 2017 | Greenfield, Indy Marsh stores closing in May

The employees could lose not only their jobs, but their health coverage.
 
Those working at Marsh locations set to close in the coming weeks said they will not receive severance packages, and their insurance benefits will expire at midnight the day the store shuts its doors.

RELATED | Marsh employees upset about lost jobs, insurance benefits

This process is similar to what Indianapolis-based electronics and appliances store hhgregg went through this year. hhgregg couldn't find a buyer, so the company closed dozens of its locations in early April.

About 3,700 people lost their jobs.

PREVIOUS | Indianapolis-based hhgregg files for bankruptcy | Indy-based hhgregg to close all stores after failing to find a buyer | hhgregg may close all 132 locations, liquidate items if company isn't purchased