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Power outages, cash-only transactions • Asheville Watchdog

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avlwatchdog.org – SALLY KESTIN – 2024-12-31 10:15:00

Ingles lost power in 80 of its 198 stores from Tropical Storm Helene, and all stores were unable to process credit or debit cards, requiring cash-only transactions “for various periods of time,” according to the company’s newly released annual report.

Power was out for up to 13 days at some stores. Four closed temporarily due to damage; one has reopened and the other three are expected to open in 2025, the report said.

Ingles’ distribution center and headquarters in Black Mountain was damaged, and the storm disrupted the company’s internet service. One distribution center employee, Gabriel Gonzalez, died when floodwaters swept him away.

Ingles estimated $14 million in lost sales as of Sept. 28, the day after the storm and the end of the company’s fiscal year.

Ingles’ annual net sales and gross profits were down compared to 2023, and more losses are expected to be documented in reports for the current fiscal year, said the annual report filed with the U.S. Securities and Exchange Commission.

But the losses in inventory caused by the storm, $30.4 million, and property, $4.5 million, were on the low end of projections the company announced in October. At the time, Ingles estimated $35 million to $55 million in property and inventory losses.

Insurance is expected to cover about $11.5 million of that total, the company said in its SEC filing.

More losses to come 

The report provides the first detailed public account of the storm’s impact on one of western North Carolina’s largest employers. Ingles owns supermarkets in six Southeastern states, among the hardest hit by Helene, and a dairy facility that supplies its stores and other customers.

“During the first two weeks immediately following the storm, the Company’s headquarters experienced communication loss and some stores remained without power and communication,” the report said. “Four stores sustained damage that required that they be temporarily closed.”

Ingles’ distribution center in Black Mountain took a serious blow from Helene, including damage to the railroad tracks in front of the building. // Watchdog photo by John Boyle

The report did not identify those stores. Asheville Watchdog confirmed that all were in North Carolina: The store in Newland recently reopened, while the three that remained closed are in Swannanoa, Morganton, and Spruce Pine.

“The distribution center returned to full operation within two weeks following the storm,” the annual report said. “The internet connection outage was restored at the headquarters several days after the storm but remained inconsistent for our stores for approximately two weeks.”

Because of the internet disruption, “all of the Company’s stores were unable to process credit or debit cards and could only accept cash for various periods of time,” the report said.

The $14 million in lost sales – from just the first two days after the storm – is expected to grow this year.

“Store closures and power outages as a result of Hurricane Helene will have an impact on net sales for the first quarter and full fiscal year of 2025,” the report said. “In addition, the lack of water and subsequent ban on water usage, will have an impact on the fluid dairy operations for the first quarter of fiscal year 2025.”

Sales, profits down

The storm contributed to a year that was less successful for Ingles by many measures:

  • Net sales of $5.64 billion were down from $5.89 billion for the fiscal year ending Sept. 30, 2023. (The most recent fiscal year consisted of 52 weeks compared to 53 weeks for the previous year.)
  • Gross profit decreased $105.1 million, or 7.5%, to $1.3 billion compared to $1.4 billion the previous year. The decrease was primarily a result of the $30.4 million in inventory losses from Helene, the report said.
  • Net income was $105.5 million, down from $210.8 million the previous year. The company attributed the loss to “inflation in the cost of goods and increases in operating expenses due to increased labor market competition,” according to the report.

Robert P. Ingle II, the company’s board chair and son of the grocery chain’s founder, said in a news release, “After Hurricane Helene impacted our communities, I am proud of how not only our associates came together, but our entire region. We are truly thankful for all the volunteers and the outpouring of support for our region.”

The annual report noted that “although the Company largely returned to normal operations within a reasonably short period of time following Hurricane Helene, there can be no assurance that future storms impacting the region will not have more severe consequences.”

Those consequences, the report said, “could more significantly and adversely impact the Company’s financial position, cash flow and results of operation.”


Asheville Watchdog is a nonprofit news team producing stories that matter to Asheville and Buncombe County. Sally Kestin is a Pulitzer Prize-winning investigative reporter. Email skestin@avlwatchdog.org. The Watchdog’s reporting is made possible by donations from the community. To show your support for this vital public service go to avlwatchdog.org/support-our-publication/.

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Parents, teachers and students grapple with fears spurred by promised immigration raids • NC Newsline

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ncnewsline.com – Ahmed Jallow – 2025-02-05 11:00:00

SUMMARY: Natalia Mejia, a multilingual teacher at CC Griffin Middle School, now fears for her students amid a federal policy shift removing protections from immigration raids in schools. Many of her students and their families live in fear of ICE. School attendance and learning could decline, compromising the constitutional promise of a safe education. While some districts, like Wake and Durham Public Schools, have issued guidelines to address concerns, parents remain anxious. Advocacy groups are working to clarify rights and alleviate fear, confirming that errant rumors can lead to increased anxiety, impacting immigrant families and the community’s overall well-being.

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Wake Superior Court is next stop for nation’s last unsettled election | North Carolina

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www.thecentersquare.com – By Alan Wooten | The Center Square – 2025-02-05 09:05:00

SUMMARY: Three justices from the 4th U.S. Circuit Court of Appeals ruled that the ongoing litigation of North Carolina’s undecided election should return to Wake County Superior Court. Republican Jefferson Griffin is challenging ballot dismissals by the State Board of Elections, claiming violations of state law. His protests, including over 5,500 overseas ballots missing photo ID, were initially dismissed by the board. The case could be appealed to the North Carolina Court of Appeals or the U.S. District Court. Democratic candidate Allison Riggs, who won by 734 votes, urges Griffin to concede, while the GOP insists on addressing alleged election law violations.

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Helene recovery will need at least $60 billion, state agency says

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carolinapublicpress.org – Sarah Michels – 2025-02-05 08:00:00

State official: The money slated for Helene recovery isn’t nearly ‘enough’

As North Carolina begins its long-term Helene recovery, the state faces a sobering math problem.

Full recovery will cost nearly $60 billion, according to a state budget office estimation. The federal government may chip in $15 billion — far less than requested. So far, the legislature has passed three relief packages, which collectively dedicate $1.1 billion to recovery. The state’s rainy day fund hovers around $3.7 billion, and it’s highly unlikely to be emptied to handle Helene efforts. 

That calculus leaves a gaping hole for the legislature, as well as local communities and private donors, to fill as Western North Carolinians look to put their lives and livelihoods back together. 

Jonathan Krebs, an advisor for the newly-created Governor’s Recovery Office for Western North Carolina, sees it as an impossible equation. 

“We didn’t get enough money, and it’s very likely that there will be a middle income group of people that are not going to be served because we run out of funds,” Krebs told the House Select Committee on Helene Recovery.  

‘Broken promises’

Lawmakers were visibly frustrated as they recently questioned Pryor Gibson, director of the North Carolina Office of Recovery and Resiliency. 

The office helps North Carolinians impacted by Hurricanes Florence and Matthew get back into permanent housing. At least that was the plan.

Eight years removed from Hurricane Matthew and six years from Hurricane Florence, there are still 1,179 homes under construction or awaiting to be built. Progress has nearly halted because more money is needed. 

Republican State Rep. Brenden Jones, co-chair of a joint legislative subcommittee on hurricane response and recovery, said at NCORR’s last legislative hearing that lawmakers were promised the final stages of housing recovery could be completed for less than $265 million. 

But last week, Gibson requested about $35 million more.

That’s been a pattern for the agency, Jones said. 

“The people of North Carolina have had enough of NCORR’s broken promises and mismanagement,” he said. “Let’s be clear: This is not our first committee meeting on your failures.” 

Ghosts of recovery efforts past

As Western North Carolina embarks on a multi-year housing recovery of its own, lawmakers don’t want to be “haunted” by the ghosts of former Gov. Roy Cooper’s “failed” recovery agency. That’s the feeling of Republican state Sen. Warren Daniel, who represents Buncombe, Burke and McDowell counties. 

Krebs and Matt Calabria, the director of the Governor’s Recovery Office for Western North Carolina, plan to learn from NCORR’s mistakes with a new housing recovery agency: the Division of Community Revitalization. 

After Hurricane Florence struck North Carolina in 2018, NCORR was charged with housing recovery. In 2019, the agency requested $1.3 billion; the state offered $664 million initially in addition to $216 million in federal funding. 

The agency’s first three years were “terrible,” Gibson said.

The office built fewer homes than expected, offered too many housing options and got caught in a bureaucratic web of unclear communication and expectations.

Things eventually improved. 

But now, there isn’t enough funding left to complete the 639 homes under construction and 540 homes not yet started. 

Krebs said that Helene recovery will be different. The Division of Community Revitalization will be an efficient group building homes quickly, “not a custom home factory.”  

Also, NCORR seemingly suffered from its large size, which led to unnecessary bureaucratic delays. In contrast, the Division of Community Revitalization will be a smaller, more nimble office. 

Finally, and maybe most important, communication and expectations were unclear for the North Carolina Office of Recovery. Calabria said that the Division of Community Revitalization will report directly to the governor with real time information on a weekly, if not daily, basis to “improve transparency.” 

“We’ve learned plenty of lessons from past recoveries,” Krebs said.

The state of Helene recovery 

Much of the financial picture remains hazy as North Carolina waits for federal funds to be approved and then deposited into the state’s bank account. 

Right now, the Division of Community Revitalization is working on its Housing and Urban Development Action Plan, which outlines how federal housing dollars will be spent. Officials are also watching as disaster recovery funds come from various other sources. 

A state report estimates that Helene recovery will total around $60 billion. Colby Rabon / Carolina Public Press

The governor’s office requested $26 billion from the federal government for Helene recovery. Krebs estimated that the state will receive $15.7 billion. It’s a “moving target” depending on eligibility demands and executive action, he cautioned. 

In the long term, GROW NC plans to appeal for more funds, Krebs said.

But at the moment, the organization is working with what it has.

“Right now, we have a clear focus of having to manage scarce resources,” Krebs said. “We did not receive near enough money to support Western North Carolina.”

This article first appeared on Carolina Public Press and is republished here under a Creative Commons license.

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