The retailer says customers can expect business as usual and all 21 of its Northern California stores will remain open. Mi Pueblo says it has not defaulted on any payments, but has reached an impasse with its only secured creditor, Wells Fargo Bank.
"Having lines of credit is just part of our normal business and unfortunately, our negotiations with the bank have not been going well, so this is something we were forced to do," said Perla Rodriguez.
ABC7 News contacted wells Fargo for a comment. A bank spokesperson says they are looking into the situation.