Anaheim, Calif. (PRWEB) February 10, 2014
Two well-known Southern California-based Hispanic retailers—Cardenas Markets and Northgate Gonzalez Markets—announced today that they have come together and reached a successful agreement with the US Bankruptcy Court to purchase Phoenix-based Pro’s Ranch Markets, which includes stores in Arizona (7), New Mexico (2) and Texas (2). The two retailers recently formed a separate LLC—Cardenas Northgate Group Ranch (CNG Ranch, LLC)—to acquire and operate Pro’s Ranch Markets. Pro’s Ranch Markets filed for Chapter 11 Bankruptcy reorganization 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. 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,” said Northgate Gonzalez Market Co-President Oscar González Reynoso.
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 that 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, as the buying power of Latinos continues to increase annually, according to Santa Barbara-based HispanTelligence, a data company specializing in identifying trends. It also reports that the Latino market is one of the fastest-growing segments of the U.S. economy. In 2012, Latino consumers accounted for $1.2 trillion in purchasing power and is projected to reach $1.5 trillion in 2015.
“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,” said Pro’s Ranch Market Executive Vice President and CFO Michael Provenzano. ”These are two fine operators with whom we have had a 20-year relationship. It’s a win-win for everyone.”
Mike Hendry, Vice President of Marketing
Northgate Gonzalez Market
About Northgate Gonzalez Market:
Northgate Gonzalez Market is a premier Southern California supermarket chain that caters to the Latino community. Family-owned, operated and headquartered in Anaheim, CA, Northgate operates 38 high-volume stores in Orange County, Los Angeles and San Diego counties, providing the highest quality merchandise, fresh and prepared foods and personal service. Learn more at http://www.northgatemarkets.com
About Cardenas Markets:
Cardenas is a family owned business headquartered in Ontario California with store locations in San Bernardino, Riverside, Imperial, Los Angeles Counties and three locations in Las Vegas, Nevada.