An article in the Wall Street Journal last week said that investigations by the U.S. Immigration and Customs Enforcement are at least partially at fault for the recent bankruptcy filings by two Hispanic-centric chains in the West.
California’s Mi Pueblo grocery store filed for Chapter 11 protection after the chain was told to replace some of its more than 3,000 workers whose documentation came under review during an ICE audit, according to court filings. The chain claims that the federal audit led the company to struggle with higher payroll costs and training expenses as new workers were brought on board.
That filing came after a similar one by Arizona’s Pro’s Ranch Market in May. That chain has 11 stores that employ about 2,235 workers. It had to lay off 300 workers (about 20 percent of its workforce) in 2010 following an ICE investigation that found some employees to be working in the country illegally. That action contributed to its financial problems, according to documents filed by the firm to support its bankruptcy claim.
The full article can be read here.
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