Thursday, October 11, 2012

California poultry company files for bankruptcy; will be eighth poultry firm to fold in the last year

Zacky Farms LLC, a California poultry company that dates to the 1920s, filed for bankruptcy this week. High feed costs following this summer's oppressive drought led to the decision, P.J. Huffstutter of Reuters reports. The company employs about 1,500 people in southern California, and listed between $50 and $100 million in assets, with debts in the same range.

The bankruptcy filing showed that the company's largest unsecured creditors are feed company Western Milling, to whom Zacky Farms owes about $6.6 million, and poultry company Foster Farms LLC, which is owed about $1.2 million. "Zacky Farms will be the eighth poultry firm to be sold, entered into Chapter 11 bankruptcy or shut down altogether since 2011, according to data from trade group National Chicken Council," Huffstutter reports. (Read more)

Huffstutter advises in an email that Zacky's is ranks about among poultry companies in revenue, and about 10th among turkey packers.

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