Dean & DeLuca: Bankruptcy exclusive to US operations
American gourmet grocer Dean & DeLuca’s operations in Thailand and Asia will be unaffected by the US operation’s bankruptcy filing because the local unit has separate accounting, says SET-listed Pace Development Corporation, the company’s Bangkokbased owner.
Pace chief executive Sorapoj Techakraisri said Dean & DeLuca was filing for bankruptcy in the US under Chapter 11 by asking for court authority to protect the firm from creditors seeking debt payment.
The firm also asked for a chance to resume business and continue operations by entering a rehabilitation plan solely for US operations.
Operations in other countries will not be affected by the bankruptcy filing, Mr Sorapoj said.
“The next step after Dean & DeLuca US enters the rehabilitation plan is working with the rehabilitation court in the US to restructure and evaluate Dean & DeLuca’s business competency in the
future to be a foundation for continuing business in the US,” the company’s chief executive said in a release.
Mr Sorapoj said Dean & DeLuca is a high-value brand and a favourite among customers.
Pace voiced confidence that the brand would be able to move forward after entering the rehabilitation plan.
Mr Sorapoj said the move to Chapter 11 will be done for only Dean & DeLuca in the US and will not involve stores in Thailand or other countries globally.
Dean & DeLuca is popular in Thailand, Japan and throughout Asia, he said.
Dean & DeLuca has 75 stores in 11 countries and territories, including Thailand, Japan, Hong Kong, South Korea, the Philippines, Singapore, Macau, US, the United Arab Emirates, Kuwait and Bahrain.
The are 14 Dean & DeLuca branches in Thailand, three under the franchise system.
In 2014, Pace purchased the global business and assets of Dean & DeLuca for $140 million.