Two Southern California-based Hispanic retailers — Cardenas Markets and Northgate Gonzalez Markets — have come together and reached a successful agreement with the U.S. Bankruptcy Court to purchase Phoenix-based Pro’s Ranch Markets, which includes seven stores in Arizona, two in New Mexico and two in Texas.
The two retailers recently formed Cardenas Northgate Group Ranch to acquire and operate Pro’s Ranch Markets, which filed for chapter 11 bankruptcy protection in May of 2013, providing the opportunity for the acquisition and union of three leading Hispanic retailers in the United States.
“We are confident that Cardenas’ and Northgate’s financial strength, supply chain structure and commitment to family values and integrity will reenergize these stores, and allow them to continue providing the wide-range of products, high-level of customer service and competitive prices that Pro’s Ranch customers have come to expect,” Northgate Gonzalez Market Co-President Oscar González Reynoso said in a press release. “We believe we can build upon the legacy of well-established values and the strong market presence that Pro’s Ranch is known for. This is a win for everyone — customers, employees, neighborhoods and families.”
As part of the purchase transaction — valued at a total of $55 million — CNG Ranch LLC will also obtain the use of the Pro’s Ranch Markets corporate office (adjacent to one of the Phoenix Stores) and a 151,000-square-foot warehouse in Phoenix. Operationally, Northgate’s team will take the lead, providing overall management and direction for daily operations, all under the supervision of the CNG Ranch LLC board of directors, which includes members from both the Cardenas and Northgate organizations.
For the foreseeable future, all 11 Pro’s Ranch Markets stores will remain open while CNG Ranch LLC assess the operational needs and brings together the operations of this new organization. CNG Ranch LLC will work closely with Pro’s Ranch Market’s existing management team to ensure that customers, vendors and the communities in which the stores serve continue to receive the quality products, fine service and excellent prices that customers have come to expect over the last 31 years.
“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 — and was even voted Arizona’s Retailer of the Year in 2012,” said Jesus Cardenas, president of Cardenas Markets. “On behalf of both the Cardenas and González families, we recognize the loyalty and patience of the 2,500 Pro’s Ranch employees and are happy to provide some closure and peace of mind for them moving forward.”
Cardenas Markets currently own 26 stores in California and three in Nevada. Northgate Gonzalez Markets operates 38 stores in California. Both retailers have future plans for growth.
“We are very pleased that two of the most successful Hispanic grocery store chains in the United States, Cardenas Markets and Northgate Gonzalez Market, will be acquiring our stores,” Michael Provenzano, Pro’s Ranch Market executive vice president and chief financial officer, said in the release. ”These are two fine operators with whom we have had a 20-year relationship. It’s a win-win for everyone.”