Townsends files for Chapter 11
December 21, 2010
GEORGETOWN, DEL. — Townsends, Inc. and four subsidiaries have filed for Chapter 11 Bankruptcy protection. Townsends operates chicken and egg farms in Delaware, Arkansas and North Carolina.
“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 B. Beilstein III, chief executive officer. “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 employees.”
The company’s operations are expected to continue during the bankruptcy process, and the company also is seeking approval to enter a $52 million debtor-in-possession financing facility to enable normal operation of its business.