Oct 9, 2012
Zacky Farms representatives stated that the Fresno-based company will continue normal operations and customer service without disruption, including sales, order processing and delivery, while it reorganizes.
"Chapter 11 restructuring represents the best long-term solution for Zacky," said representative Keith Cooper. "Zacky remains a viable business that is deeply committed to our employees and the customers that we serve."
"There is much work ahead but, time and time again, our employees have proven their ability to face significant challenges and handle change," Cooper added. "By working together, we can preserve Zacky and its future."
Zacky Farms, LLC has secured a debtor-in-possession (DIP) financing facility from The Lillian Zacky Family Trust and has hired strategic advisors to explore alternatives.
The poultry, grain and feed company had been under increasing stress recently because of sky-high corn and soybean meal costs, suffering operating losses that depleted liquidity and working capital.
Zacky Farms has not yet announced a target date for emergence from Chapter 11 bankruptcy.
A 57-year-old Central Valley poultry company with 1,500 Californians on its payroll, Zacky Farms is confident about its future success through the continued satisfaction and loyalty of valued customers.