Frozen bagged seafood and entrees processorContessa Premium Foods, Inc., San Pedro, Calif., said it filed Chapter 11 reorganization proceedings in Los Angeles.
Contessa said Wells Fargo will provide ongoing financing during the reorganization and that major creditors "are supportive" of the process. Officials said Contessa hopes to "reduce obligations" associated with its green processing plant in Commerce, Calif.
"... [T]he global financial downturn combined with intense competition from well-financed multi-national corporations has caused Contessa to be unable to profitability utilize the full capacity of the Commerce plant," officials said.
The company said it will use its shrimp, seafood and private label business to grow and help Contessa return to profitability.
"The agreement with Wells Fargo provides adequate liquidity for normal operations to continue without any disruptions to our customers, vendors and employees," said John Z. Blazevich, Contessa chief executive officer. "After 25 years of consistent growth and profitability, we thank our loyal customers for their reception to our innovative products over the years, and our employees who executed those visions seamlessly. Our restructuring process will strengthen our financial health and long-term growth and have Contessa resume the leadership and innovation we have been recognized for globally."
Contessa files Chapter 11 to reorganize
Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!