Bankrupt Arizona grocery chain Bashas' Inc. has rejected a buyout offer of at least $260 million from rival Albertsons.
Albertsons CEO Bob Miller sent a letter including the offer to Bashas' chairman Eddie Basha Jr. early this month. It was revealed in a filing in U.S. bankruptcy court by lawyers representing lenders.
The lenders' filing says Bashas' hadn't disclosed it had been approached by Albertsons until the letter forced its hand.
Bashas' attorney Michael McGrath says the offer was insufficient and the company is on track to emerge from bankruptcy in April.
A Chandler family-owned business, Bashas' was stung by the national credit crisis, slowing growth and the hyper-competitive Phoenix-area grocery market. It filed for Chapter 11 bankruptcy reorganization in June.