Allen Canning files Chapter 11
by Emily M. Hobbs Staff Writer
Allens, Inc., with a plant just outside of Turkey, filed for Chapter 11 bankruptcy on Monday, Oct. 28, in United States Bankruptcy Court for the Western District of Arkansas.
Sources close to the company have said the planned reorganization should not impact the approximately 300 employees at the Sampson County facility.
Calling it a strictly finanicial issue, the source said the business will continue operations as they have been.
Officials with the company, which has been in business for over 87 years, announced this week that it is going to restructure debt under the federal bankruptcy laws and that it plans on selling off its frozen vegetable businesses and instead make their focus their “core canned vegetable markets” as stated in their release.
“Allens has a long and proud history and we intend to use the reorganization process to become a stronger, more competitive business,” said Josh Allen, president and Chief Executive Officer of Allens in a press released Monday. “We remain firmly committed to serving our customers and providing consumers with great tasting, affordable and high quality vegetables. We appreciate the support of our suppliers and the ongoing dedication of our employees, whose hard work is critical to the future of our business.”
Allens sells vegetables under different labels including Allens, Princella, Freshlike and Royal Prince. The voluntary Chapter 11 will allow the company to restructure its debt to allow for better organization. In a letter to its customers the company said that they “believe doing so will give us the opportunity to continue our efforts to operate more efficiently and pursue restructuring alternatives.”
Currently the company is filing motions to request authorization to continue paying employee wages and providing health care and other benefits . The request has also been made to allow them to continue the existing customer programs according to the release.
Allens has also asked for authorit to continue existing customer programs and intends to pay suppliers for goods and services provided after the filing date of Oct. 28.
More information on the company’s restructuring efforts can be found at http://www.allens-restructuring.com.
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