City Markets Facing Financial Collapse
A net loss of over $2.2 million was recorded by City Markets during the first quarter of its 2011 financial year as indicated in a balance sheet released by Bahamas Supermarkets, the 11-store chain’s immediate operating company.
Unconfirmed rumours suggested that Bahamas Food Services’ possible 78 per cent acquisition of the ailing City Markets had fallen through.
Neal & Massy-operated BSL Holdings, the current majority owner of City Markets had injected $1.594 million in cash into the struggling supermarket chain during the three months to September 22, 2010, a significant amount of which was used to reduce payables to Bahamian suppliers – some of which had already stopped supplying the company due to non-payment.
While City Markets’ liabilities were then reduced from $16.188 million at the 2010 year-end to $14.147 million at September 22, 2010, assets were also reduced from $15.137 million to $12.451 million.
Neal & Massy has said that they will not funnel new funds into City Markets but instead are increasing efforts to get rid of the company, now seeking a possible deal with Senator Jerome Fitzgerald and Mark Finlayson, principals in the BK Foods group.