Today, it was announced that the Adams Produce Company LLC was filing bankruptcy under Chapter 11. Adams produce is more than 100 years old and based in Birmingham, Alabama. According to court records, the company filed for bankruptcy under Chapter 11 on Friday.
It is known for distributing fresh fruits and vegetables to restaurants, schools and stores all over the southeast. According to bankruptcy filing documents in the U.S. Bankruptcy Court in Birmingham Alabama, the company currently employs 400 and has distribution centers in Alabama, Arkansas, Florida, Georgia, Mississippi and Tennessee.
The bankruptcy attorney representing Adams produce has not made any comments regarding the pending bankruptcy. On Friday, US bankruptcy judge Tamara Mitchell ruled, allowing the company to sell $649,000 in produce held in company inventory. The judge also heard a number of motions regarding the bankruptcy petition, including ones asking for authorization to continue paying employees wages. This motion and others were continued on until April 30.
It’s becoming common to see old household names filing bankruptcy. Adams Produce was founded in 1903 by Edwin Calvin Adams. Back in 2010, the Adams family sold the company to a private equity firm and current executives.
The company’s loans are now secured by company assets. Currently, the company has a real estate loan to the tune of $1.3 million and a revolving credit loan in the amount of $3.4 million. The company also owns $4.4 million on Accounts Payable from other creditors and $10.2 million to agricultural suppliers.
Only time will tell if this hundred-year-old icon will exit the bankruptcy filing in better shape.