Allens Inc.'s $10 million PACA violation
Allens Inc.'s $10 million PACA violation
The U.S. Department of Agriculture has cited Siloam Springs, AR-based Allens Inc., also known as Veg Liquidation Inc., for failure to pay $9.76 million to 40 produce sellers for 2,312 lots of produce.
As a result of this violation of the Perishable Agricultural Commodities Act, Allens Inc. cannot operate in the produce industry until Dec. 2, 2017, at which time it may apply for a PACA license. The company’s principals have challenged their responsibly connected status.
In 2013 Allens filed for chapter 11 bankruptcy protection. The company, which was founded in 1926, was acquired by Sager Creek Vegetable Co. in a bankruptcy proceeding in 2014. Del Monte Foods subsequently aquired Sager's assets for $75 million in March 2015.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million.