December 21st, 2008 @ MReed // No Comments
Pilgrim’s Pride is the largest chicken producer in the US, but even big companies are feeling the pinch from this economy. The company filed for Chapter 11 bankruptcy protection in order to try to help its struggles.
Right now it has several problems. One of those is an unmanageable debt load. With the current economy, money just isn’t coming in like it used to, and that’s keeping debt from getting paid down like it normally would. The debt load and the lowered demand for products aren’t the only problems, though. Another problem for the company is that feed prices are still very volatile.
There have been problems with Pilgrim’s Pride on the financial side for a long time – most notably after it acquired Gold Kist (and a lot of debt) in 2007. Fourth quarter losses were significant, and that finally drove the company to bankruptcy. With Chapter 11, however, the company will continue to operate and will reorganize to begin paying down its debt. With 23% of the chicken market, it should be able to accomplish that, if it can hold on until the economy improves.
Tags: Bankruptcy, chapter 11, pilgrims pride, trucking business, trucking company
