US-based retail food chain Marsh Supermarkets has filed for Chapter 11 bankruptcy protection in order to continue operations across 44 stores until it finds a buyer.
The petition was filed in the US Bankruptcy Court in the District of Delaware.
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The 86-year old grocery store chain intends to sell all or part of its business after struggling to compete with larger national and regional chains.
The company has reported that its network of 44 stores will continue to operate throughout the bankruptcy case proceedings.
It has also announced that payments to its employees towards their usual salary and benefits will continue, while goods and services will also be paid for.
The company has retained Peter J. Solomon Company as an investment bank to market its assets.
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By GlobalDataMarsh Supermarkets CEO Tom O'Boyle said: "While today's decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale.
"After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the company's stakeholders."
Owing to competition from other players in Indiana and Ohio grocery marketplace, the company resorted to price-cutting and other forms of promotional activity that ultimately strained its profit margins.
Marsh Supermarkets already closed 21 unprofitable stores earlier this year. The retailer also sold its in-store pharmacy business to Hook-SupeRx.
