Store managers say they don’t know what will happen to their stores as the company waits for a buyer it hopes will come along before stores begin to shut down.
The nutritional-supplement retailer is currently operating under Chapter 11 reorganization and adopting a “business as usual” mode while it sells the merchandise it has in stock, according to store managers.
 Warehouse Vitamins has more than a dozen locations in Southern Arizona including this one at 485 E. Wetmore Road. |
In April 2007, the parent company, GR Development, filed for Chapter 11 bankruptcy. Last month, two creditors filed notices of default against the retailer. Failure to comply with the terms of Chapter 11 reorganization could result in control of the company being handed over to the creditors.
One of the creditors, Tree of Life Southwest, is looking to operate the business, according to two of the store managers.
That temporary ownership has not yet been finalized.
“We filed an action in state court in Tucson in order for appointment of receivership,” said Tree of Life Senior Vice President and General Counsel Kelly Kosmin.
The Florida-based distribution company filed a motion in Pima County Superior Court on October 23, asking for temporary control of Warehouse Vitamins while the company is in bankruptcy. Resolution of the matter is still in litigation.
White said Warehouse Vitamins customers would lose out if the chain closes because of the discount prices and the knowledge of the staff.
“People increasingly don’t have medical insurance they can’t afford doctors, they depend on us,” she said. “We’re not doctors, but we’re committed to helping our clients.”
Earlier this year, the company closed its stores it operated in the Phoenix market under the name Valley Vitamins.
Warehouse Vitamins also has 12 locations in the Tucson area, plus one each in Green Valley and Sierra Vista.
Contact reporter Nicholas Smith at 295-4238 or at nsmith@azbiz.com.
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