Wm. Consalo & Son Inc. was one of New Jersey’s best known and respected produce companies for over 80 years and has shut down its operations and plans to liquidate assets to satisfy creditors. The only problem with this is under the Perishable Agricultural Commodities Act (PACA), if truckers are owed any money, there probably won’t be any left by the time produce industry related debts are paid.
John Molinelli Inc., a freight shipping and trucking company headquarted in Vineland, NJ, is owed $38,000. The firm filed a lawsuit against Consalo on March 1 and a consent injunction was entered March 26 in U.S. District Court in the District of New Jersey, Camden Vicinage, thus putting in motion the PACA Trust claims procedure. Debt covered by the PACA Trust receives first consideration and will be paid before money owed other creditors, including truckers, are paid.
There are nearly 50 creditors owed about $3.3 million. How much of this debt will be covered by the PACA Trust is not yet known.
Creditors will be notified by May 1 and will have through the month ofl May to file a proof of claim,. This will be reviewed by attorneys. Funds are scheduled for distribution to creditors on August 23.
Consalo was founded in 1927 in Vineland, NJ, by William Consalo.