Gerawan Farms stonefruit is marketed under the Prima brand.

Fresno-based Prima Wawona, the industry’s largest producer of stone fruit, has filed for Chapter 11 bankruptcy protection with hopes of selling the business.

Prima Wawona — born from a merger of Gerawan Farming and Wawona Packing in 2019 — had the backing of its lenders in its Oct. 13 bankruptcy filing, as well as their cash collateral to support operations and bankruptcy proceedings. The company, owned by private equity firm Paine Schwartz Partners, is exploring options including a third-party sale or conversion of existing lender debt into equity ownership, according to a news release.

Prima Wawona has filed for court approval to continue operations, including payment of wages and benefits for more than 8,000 employed in jobs including ranchers, harvesters, warehouse, packers and more. The company also intends to pay vendors in full “for goods and services provided on or after the filing date.”

John Boken, Prima Wawona CEO, stated, “We recently completed the 2023 harvest season, during which our team grew, packed and delivered more fruit across more acres than ever before. At the same time, the business has faced significant headwinds, including increased costs and weather-related impacts, that have combined to make our existing capital structure unsustainable. Over the course of this year, we proactively evaluated options intended to enable us to build on our leading market position, our efficient and sustainable farming practices, and our history as an employer of choice.”

Grower Dan Gerawan led the merger of his company with Wawona Packing, staying on as CEO until he was ousted by Paine Schwartz in 2020, reported the San Joaquin Valley Sun. Gerawan in July  filed a lawsuit against Paine Schwartz, alleging it intentionally sunk his former company for financial gain, reported The Sun.

The loss was staggering. The collective holdings of the Maine Public Employees Retirement System in Prima Wawona shed 96% of their value in five years.