Monday, October 28, 2013
Arkansas canner Allens files for bankruptcy
SILOAM SPRINGS, Ark. (AP) — Arkansas-based Allens Inc. filed paperwork Monday seeking to reorganize its debts under federal bankruptcy laws and said it wants to sell what’s left of its frozen vegetables business so it can focus on canned goods.
Allens listed debts of at least $100 million in its Chapter 11 bankruptcy filing, Arkansas Business reported Monday. Such filings, once approved, let companies and individuals reorganize their finances through a court-approved plan.
In a statement, the 87-year-old Siloam Springs-based company said it wanted to become a stronger, more competitive business. It said it is seeking a buyer for its frozen vegetables operations in Montezuma, Ga. Allens acquired five frozen foods plants from Birds Eye Foods Inc. of New York in 2006 but sold four of them to a private group last year.
The company sells vegetables under the Allens, Princella, Freshlike and Royal Prince labels.
The company has 960 employees. Its largest unsecured creditors are Ball Metal Food Container of Broomfield, Colo., which is owed $46.2 million, and Crown Cork & Seal USA of Philadelphia, at $18 million.
Allens said it expects to have the money to pay its unsecured creditors.