Two companies bid for Quincy Foods
At least two companies are competing to purchase Quincy Foods from Norpac.
Simplot Frozen Vegetables submitted a competing bid of $21.5 million on Monday, according to U.S. Bankruptcy Court of Oregon documents. The Oregon Potato Company’s bid for the company was also $21.5 million, according to a Nov. 15 court document.
A federal court judge is due to make a decision on the purchase of Quincy Foods by the Oregon Potato Company on Tuesday. Quincy Foods’ parent company, Norpac, entered into chapter 11 bankruptcy in August. Quincy Foods employs about 360 people, according to the Grant County Economic Development council.
A chapter 11 bankruptcy is often done to reorganize a business, according to the United States Court System website. A company will sell some of its assets and restructure to become profitable again.
The company attempted to sell all of its assets to the Oregon Potato Company on Oct. 28, but the company backed out of the sale.
Both Simplot Frozen Foods and the Oregon Potato Company are only seeking to purchase Quincy Foods and not Norpac’s other assets, according to court documents.
Norpac owes over 5,000 creditors over $165 million, the Statesman Journal reports.
According to court documents, Norpac acquired $8.9 million in gross revenue in August from its sales of frozen and canned foods. The total cost of labor, packaging and manufacturing those goods was about $6.9 million and additional expenses were $1.9 million. The company found itself at a $865,007 net loss.
As of Oct. 31, the company had a combined $7.9 million net loss, according to court documents.
According to court documents, Norpac’s assets include about:
$5 million in land
$55.7 million in buildings
$155.3 million in plant equipment
$4.9 million in harvesting equipment
Norpac is also alleged to owe several of its customers for the delivery of fresh produce, according to court documents. A carrot farming company, Mercer Ranches from Alderdale, Washington, filed a lien on Dec. 6 alleging it delivered four million pounds of fresh carrots to Quincy Foods in October. Mercer Ranches is owed $254,234 for that delivery, but has not received any payment, according to court documents.
Mercer Ranches is just one of several liens against the company.
By Tony Buhr email@example.com