LIVINGSTON, Calif. – Fresno, Calif.-based Zacky Farms is allegedly selling Zacky-branded chicken again after keeping its promise not to use its logo on chicken for 11 years, according to a bankruptcy court complaint filed against it. As a result, Livingston, Calif.-based Foster Farms is suing Zacky Farms, the Wall Street Journal reports.
Court documents show Foster Farms acquired Zacky Farms’ “chicken-related assets” in 2001 through an agreement that prohibits Zacky Farms from using its brand name on chicken products. At present, Zacky’s poultry business is primarily turkey sales, however, it still raises chickens. According to its bankruptcy filing, it has 1.9 million turkeys and 600,000 chickens.
Foster Farms said Zacky Farms had complied with the agreement — which doesn’t prohibit Zacky from selling chicken, just from using its logo on chicken — since the acquisition. But around the time of its October bankruptcy filing, Zacky allegedly began selling branded chicken again.
Two pictures of packaged chicken featuring the Zacky Farms logo allegedly taken at two separate California markets during the month of October are included in the complaint. According to Foster Farms, it sent a letter on Oct. 26 to Zacky asking it to stop such sales. Foster said its only option now was to file a lawsuit since Zacky didn’t respond.
The US Bankruptcy Court in Sacramento, Calif., will rule on this complaint.