The giant food chain Fry’s has been forced to shut its three Texas-based stores after the company failed to meet minimum requirements for food stamp benefits.
Fry’s announced that it had signed a deal with the Texas Department of Agriculture to operate the stores, but only after it received an “administrative letter” in January from the department.
The letters came from the Department of Finance, a separate entity which oversees food stamps.
Finance is the same entity which audits and auditors Fry’s food supply chain.
Frey’s Food Services, the parent company, said the letters were issued by the department on the company’s behalf.
In a statement, Fry’s said it had been working with the department to resolve the situation and that it was “pleased to announce that all Fry’s stores will be operational for the foreseeable future”.
“As we strive to meet the needs of Texans, Frys has agreed to a multi-year agreement to manage its food service businesses,” the statement said.
Fried’s was formed in 1994 and has a total of 13 Texas locations.
It is one of the country’s largest food service providers, with about 6,400 employees and 2,700 suppliers.