Centennial Beverage Group, which recently launched an "inventory liquidation" sale but said late last week that it was not shutting down, has filed for Chapter 11 protection in U.S. Bankruptcy Court in Dallas, its attorney said Tuesday.
In court filings, the liquor store operator said it owed more than $10 million to lenders, including Spanish-owned BBVA Compass Bank, and creditors such as Glazer's and Republic, both large liquor and wine distributors in Dallas. The petition did not tally total liabilities.
But its attorney, Robert D. Albergotti of Haynes and Boone, said Centennial would restructure without the need of traditional debtor-in-possession borrowing, saying it had sufficient cash flow to see it through the closing of some stores and operating the remaining retail outlets.
The number and location of stores to be closed have not yet been decided, Albergotti said. Centennial expanded in 2011 by acquiring Majestic's stores out of bankruptcy but has scaled back in the past year from as many as 70 stores to 23 Centennial, Majestic and Big Daddy's.