Zacky Farms filed for bankruptcy protection on November 13, 2018. Photo by David Castellon.
Written by Gabriel Dillard
Zacky Farms filed for Chapter 11 bankruptcy protection on Tuesday.
The move comes a couple of weeks after news broke that the poultry processor was shutting down its Stockton and Fresno plants and eliminating 475 jobs.
The bankruptcy petition lists estimated assets as well as debts in the range of $50 million to $100 million. It was signed by managing member Lillian Zacky, who drafted a letter to employees a couple of weeks ago hinting at troubles in the company.
Zacky Farms is represented in bankruptcy court by Los Angeles law firm Levene, Neale, Bender, Yoo & Brill LLP.
The largest unsecured claim from a creditor listed in the petition is from Goshen-based Western Milling for $8.3 million. Western Milling makes animal feed.
The second largest is from Cuddy Farms of Ontario, Canada, for $1.27 million. Cuddy Farms is an international supplier of turkey eggs and poults, or young turkeys.
A listing of Zacky’s property holdings includes more than a dozen parcels of land from Stockton to Lemoore. It lists the current value of Zacky’s interest in all of the properties at $13.9 million.
A telephone auction held by GemCap Lending I, a secured lender of Zacky Farms, will take place Thursday at 9 a.m. The auction will include machinery and equipment including furniture, fixtures, computer and telephone equipment and more, according to a news release.