CALUMET – The owners of the two Louie’s markets and Quality Hardware have filed for bankruptcy.

Lakes Super Market, Inc. and LJNG, LLC, filed under Chapter 11 in U.S. Bankruptcy Court in Marquette Tuesday.

According to court documents, Lakes has $881,779 in assets, versus $6,774,346.30 in liabilities.

The company has a $3.9 million bank loan with Superior National Bank, $3,028,086 of which is unsecured. It also holds $1.6 million in trade debt with food supplier Spartan Nash, $1.595 million of which is unsecured.

Dane Bays, attorney for Lakes and LJNG, stressed the filing was done with the cooperation of their creditors and they would confirm a reorganization plan as soon as possible.

“This is not blindsiding anybody,” he said. “We’ve been working with the secured creditors – the bank and the primary supplier – for months and months … Chapter 11 gives everybody the time we need to make this viable.”

Asked if the restructuring plan would involve laying off staff, Bays said “never.”

“To be honest with you, especially in this area, the primary concern in Chapter 11 is the employees … it’s a job-saving effort,” he said. “Given that everybody seems to be so on board, I like our chances a lot.”

Bays said the stores will stay open during the bankruptcy process.

“Everything goes on as normal,” he said. “This is essentially an attempt to take care of issues that have nothing to do with our customers and our ability to serve them.”

Priority unsecured claims include $50,000 owed to the Internal Revenue Service, more than $26,000 to the State of Michigan and $15,201 to Torch Lake Township.

Superior National Bank and Allied Electrostatic of Minnesota, which Lakes owes $4,804, have suits over their debt pending in Houghton County. The State of Michigan also seized $6,000 for back taxes in April and July.

According to the Louie’s Fresh Market website, the Meneguzzo family’s properties employ more than 120 people.

The family is in its third generation in groceries, according to the website. In 1976, Louis Meneguzzo Sr., purchased the Lake Linden Quality Super Markets store, which he had previously managed. It moved to a bigger location outside of town in 1993. Three years later, the previous location became Quality Hardware.

Louie’s also bought the former Fraki’s Finer Foods in Calumet in 2002, renaming it Louie’s Super 2 Foods. They stayed there until 2011, when they opened Louie’s Fresh Market outside of Calumet, which also includes a hardware store.