Allen Family Foods declares bankruptcy, plans sales to Mountaire Farms
Dow Jones News has reported that Allen Family Foods Inc., a 92-year-old Seaford, Del., poultry company, has filed for Chapter 11 bankruptcy protection Thursday with plans to sell itself to rival Mountaire Farms of Delaware Inc.
Rising feed and fuel prices combined with decreased demand for the 2 million chickens it processes on a weekly basis left Allen unable to keep up with its debts, including $82.3 million in secured loans from MidAtlantic Farm Credit ACA.