World Food Mart’s management team announced the news April 2 on social media. In its post, management said it was not a decision that was made lightly.

“After years of serving our community, it is with a heavy heart that we share that World Food Mart has filed for bankruptcy and shut down temporarily,” the company’s statement read. “Over the past several years, we were involved in a legal matter that ultimately led to the court allowing the sale of our store to new buyers.”

But as we’ve learned, the word “several” is doing some major work here. 

Whole Food Mart’s parent companies, World Food Imports, Inc. and KGF World Food Warehouse, Inc., filed for bankruptcy April 3. According to court documents, World Food sold its Houston grocery store to HHO United Group back in 2014 for $6.6 million. A year later, HHO sued World Food, claiming the latter had refused to complete the sale and continued to operate the store.

HHO and World Food’s legal battle went on for years. Eventually, a Dallas County judge ruled in favor of HHO in 2022. World Food was ordered to complete the sale and pay HHO $3.8 million in profits the store made, plus damages. World Food filed an appeal and kept the case in play for four more years until the appellate court at last affirmed the previous court’s decision on Feb. 4.

World Food, in its Facebook statement, said it was “fully prepared” to close at the end of March. But, according to court documents, HHO filed for a temporary restraining order against World Food on March 30 to “trap sale proceeds.” Essentially, there was worry on HHO’s part that World Food would allegedly try to avoid paying what it owed in the lawsuit. 

In response, World Food filed for bankruptcy the next day and temporarily closed the restaurant. 

“To make sure our employees and vendors are treated fairly and paid what they are owed, we made the painful but responsible decision to file for bankruptcy so the court can step in and ensure all obligations are honored,” World Food’s statement read.

According to court documents, the trustee appointed in the bankruptcy case has asked a judge to proceed with World Food Mart’s sale to HHO and sell everything “as is, where is.” There are still a lot of perishable products still inside the store. 

“To our employees, vendors, customers, and supporters—thank you. Your trust and support over the years mean more to us than words can express,” World Food Mart’s statement concluded. “We ask for your understanding, your prayers, and your support during this difficult time.”