Cagle’s, a 60 year old company and Georgia’s largest poultry producer filed for Chapter 11 bankruptcy on Wednesday, according to the Atlanta Journal-Constitution.
Cagle’s listed that their assets total $92 million, but they face $68 million in debt. The company filed with the U.S Bankruptcy Court in Northern Georgia. Cagle’s is the 21st largest poultry company in the United States.
In their most recent financial reports, they noted that feed prices, which made up about fifty percent of the costs of bringing poultry to the market, had increased to 68 percent in comparison to this time last year. Cagle’s is publically traded but the majority of control lies on the hands of the family. In the past, they have cut insurance costs and administrative pay and despite a 4 percent increase in sales are still facing financial hardships.
The price of corn, the main ingredient of chicken feed has increased from $3.50 a bushel to $7.00 a bushel.
Troubled companies and individuals often employ bankruptcy attorneys to prevent them from losing their businesses or homes.
The Chapter 11 filing allows to company to continue operation and protect their assets while they work out payments with creditors. A bankruptcy lawyer may recommend this type of structuring for some companies.
Every person or business faces different financial difficulties and the bankruptcy court has a variety of ways to get debt relief. Seeking the counsel of a bankruptcy attorney can outline your options and help chose which structure will work best.
