Allen Family Foods files for Chapter 11 protection

by Staff
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SEAFORD, DEL. — Allen Family Foods Inc. (A.F.F.) has filed Chapter 11 bankruptcy protection citing changes in the market for poultry. On the heels of the bankruptcy filing, Mountaire Farms of Delaware Inc. and Seaford Milling Co., its newly formed affiliate, announced they had entered into an asset purchase agreement to acquire the entire inventory, hatcheries, feed mill, breeder operations, rendering operations and production assets of A.F.F., Allen Hatchery Inc. and JCR Enterprises Inc.

A.F.F. said it would continue to own its corporate-owned grow-out farms and related farmland operations. Approximately 2,300 people in Delaware, Maryland and North Carolina are employed by A.F.F.

Any acquisition of Allen’s operations will require bankruptcy court approval.

“Pending court approval, our intention would be to commence operations as soon as possible,” said Dave Pogge, chief executive officer of Mountaire.

Mountaire Farms also announced expansion plans for its processing facilities in Selbyville and Millsboro, Del. The planned expansion will increase the need for area poultry growers to support an additional 400,000 birds per week.

“Although the poultry industry continues to face challenges, we are optimistic about the opportunities for growth in the Delmarva region and expect the benefits in the coming years to justify the investment needed for expansion,” Mr. Pogge said.
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