Fresno-based Zacky Farms, one of the largest turkey producers in the US, has filed for Chapter 11 bankruptcy, blaming high feed prices for soaring losses in recent years.
The bankruptcy filing sets the stage for an auction sale of the company by mid-January, according to court documents filed this week in Sacramento, reports fresnobee.com.
The auction would come after the main turkey-selling season of the Thanksgiving and Christmas holiday season, during which Zacky expects to rebuild its cash flow.
In its bankruptcy petition, the company said it faced between $50 million and $100 million in debts. Court records indicate that among the largest creditors are companies that provide poultry feed for Zacky Farms.
The family-owned company not only runs its turkey processing plant in Fresno and another processing centre in Stockton, but also operates a number of its own turkey farms in the central San Joaquin Valley.
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