June 10, 2011

Allen Family Foods files for bankruptcy protection

Allen Family Foods Inc., a chicken producer based in Seaford, Delaware, applied for bankruptcy protection due to changes in the demand for poultry.

The company listed both assets and debt in the range of US$50-100 million in Chapter 11 documents filed today (Jun 10) in US Bankruptcy Court in Wilmington, Delaware. Affiliates Allen's Hatchery and JCR Enterprises also sought protection.

"A recent lag in the industry market has forced the company to reposition the business by reducing volume and diversifying its product line," Vice President of Finance Brian Hildreth said.

Allen Family, founded in 1919, processes about two million birds and packs about eight million pounds of poultry products a week. The company employs 2,273 people at locations in Delaware, Maryland and North Carolina, court papers show.

The case is In re Allen Family Foods Inc., 11-11764, US Bankruptcy Court, District of Delaware (Wilmington).