Townsends Inc. files Chapter 11
December 20, 2010
by Meat&Poultry Staff
GEORGETOWN, Del. – Townsends Inc., a third-generation, vertically integrated poultry processer, and four of its subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. The company's operations are expected to continue during the bankruptcy process as it explores strategic alternatives.
"Since 2008, our company has been impacted by record high feed-ingredient costs on the one hand and low chicken pricing on the other," said Frederick Beilstein III, CEO. "The company's management and its board of directors determined that a Chapter 11 filing was a necessary part of the company’s restructuring. We believe that it will allow us to best serve our stakeholders, including our customers, our vendors and our employees.”
In conjunction with the filing, the company is seeking approval to enter into a $52 million debtor-in-possession financing facility, to enable normal operation of its business, including the timely payment of employee wages and other obligations.
During the Chapter 11 process, suppliers should expect to be paid for post-petition purchases of goods and services in the ordinary course of business.
Townsends Inc. operates facilities in Arkansas, North Carolina and Georgia. Its brands include Chef’s Select, Perfect Breast, Pristine Cuisine, Ruby Dragon, Speedy Bird and Zabiha Halal.