Company with 1,300 local employees files for Chapter 11
Triangle Business Journal
Pilgrim’s Pride Corp., the chicken processor with a 1,300-worker facility in Sanford, said Monday that it has filed for Chapter 11 bankruptcy.
The company, based in Pittsburg, Texas, says it does not expect daily operations to be affected by the move. A Chapter 11 bankruptcy filing allows companies to protect their assets while they reorganize in a more sustainable fashion.
Pligrim’s Pride has been hit hard this year by a number of factors, including the high cost of ingredients for chicken feed and a softening demand among consumers for meat. Earlier this year, the company shut down a facility in Siler City where it had employed more than 800 people.
“After careful consideration of all available alternatives, the Company’s Board of Directors determined that a Chapter 11 filing was a necessary and prudent step and the best way to obtain the financing necessary to maintain regular operations and allow for a successful restructuring,” CEO Clint Rivers said in a written statement. “We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability. We are proud of the consistently high quality of our products, our valued customer relationships and the high level of service we provide.”
Pilgrim’s Pride (NYSE: PPC) says it’s reached an agreement to obtain $450 million debtor-in-possession financing from a group of lenders led by Bank of Montreal. Debtor-in-possession financing is money received by a company that’s in bankruptcy.
Pilgrim’s Pride also said Monday that it lost $802 million in the fourth quarter. A good chunk of the loss came from non-cash charges, but even excluding the charges, Pilgrim’s Pride lost $265 million in the quarter.
A Troubled Town
Triangle Business Journal reported earlier this year on what a huge effect the closing of the Pilgram's Pride plant could have on the Chatham County town of Siler City.
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