US: Cardenas, Northgate buy fellow Hispanic retailer Pro's Ranch
US Hispanic retailers Cardenas Markets and Northgate Gonzalez Markets have bought Phoenix-based peer Pro's Ranch Markets, which filed for Chapter 11 protection last year.
The two Californian retailers have formed a separate entity - Cardenas Northgate Group Ranch - to buy Pro's Ranch, which has 11 stores across Arizona, New Mexico and Texas.
Pro's Ranch filed for Chapter 11 bankruptcy protection in May. The buyers said its stores would remain open "for the foreseeable future" while they review the enlarged business.
Cardenas Markets owns 26 stores in California and three in Nevada. Northgate Gonzalez Markets has 38 stores in California.
"Even though Pro's Ranch has experienced a number of operational and financial difficulties over the last few years, it has continued to foster a fiercely loyal customer base - one that took years to develop," Jesus Cardenas, president of Cardenas Markets, said.
Pro's Ranch CFO Michael Provenzano said the retailer's new owners were "fine operators". He added: "It's a win-win for everyone."
Cardenas Markets and Northgate Gonzalez Markets said they have plans for growth, pointing to the "buying power" of Latinos in the US.
They cited figures from HispanTelligence, a data company specialising in identifying trends, which they said showed the Latino market is "one of the fastest-growing segments of the US economy". In 2012, Latino consumers accounted for US$1.2trn in purchasing power and is projected to reach $1.trn in 2015.
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