Posts Tagged “Progreso Produce”
A company filing bankruptcy is never good for anyone. In the produce industry there is the Perishable Agriculture Commodities Act (PACA) administered by the USDA, whereby creditors receive a certain amount of protection, and hopefully get at least a portion of the money they are owed repaid.
I’ve advocated for decades that product truckers be offered the same protections under PACA that are afforded those in the produce indutry. Under a bankruptcy truckers would be among the last in line to be paid, which usually means they will receive nothing.
I was reminded of this when Progreso Produce Limited I LP filed for Chapter 7 bankruptcy liquidation for the Boerne, Texas, business Sept. 30. The 40-year-old company is listing more than 60 creditors including many fresh produce companies.
The company is reported to have debts ranging from $1 million to $10 million. Assets of less than $50,000 are reported. The bankruptcy trustee notes there doen’t not appear to be any property available to the trustee to pay creditors.
River Ranch Closing
Meanwhile, produce, grower-shipper-processor of fresh vegetables, River Ranch Fresh Foods is closing operations. The Salinas, CA, based company will cease operations, effective Nov. 8.
Taylor Farms Retail will service retail value-added accounts beginning Nov. 9, plus Growers Express will handle all field-pack commodity requirements.
River Ranch, which was formed 34 years ago, was purchased by Taylor Fresh Foods three years ago with the hope of improving financial performance and regaining viability.