May 10, 2006 9:52 AM, from staff and wire reports

Kirkland WA-based Larry's Markets is in discussions with several interested parties regarding the sale of the company and has filed for financial protection under Chapter 11 of the United States Bankruptcy Code.

"The Chapter 11 filing allows for continued operations and the time to successfully continue and complete the discussions regarding the sale of our stores. It is a difficult personal step to take, but one we feel is the best option," said Mark McKinney, Larry's chief executive officer. "We expect the sale process to be completed in the next 90 to 120 days. In the meantime, it's business as usual at Larry's Markets. "

McKinney said the company has been operating in the face of heavy debt obligations and an increasingly competitive market. Bankruptcy papers list its assets as $12.6 million and liabilities of $21.5 million, including $11.2 million in secured debt.

Larry's has approximately 550 employees and operates stores in Redmond, Bellevue, Kirkland, Tukwila, and two in Seattle WA.