Mills hit by low real estate and vegetable markets
Mills hit by low real estate and vegetable markets
SALINAS, CA -- Rumors about the financial health of Mills Family Farms have been circulating for months, and the firm is currently working on restructuring its businesses, according to a well-known public relations figure recently retained by the company.
"There are a number of discussions that are taking place daily" in an effort to resolve Mills' problems, said David Armanasco, a recognized public relations figure in Monterey County.
In addition to its farming operations, Mills has substantial real estate holdings in the Monterey area.
Mr. Armanasco said that several years of low markets in produce coupled with high fuel prices that are hampering distribution have hurt Mills. Add to that a downturn in the real estate market that has made it harder to sell home lots, and both business segments have put Mills "in the eye of the perfect storm," he said.
Mr. Armanasco said that Mills Family Farms, which is based here, is fully dedicated to making good on its financial obligations and turning its businesses around.
"There has been no decision to seek protection under federal bankruptcy," Mr. Armanasco said.
The company has money invested in the Monterra Ranch in Monterey, CA, and in other housing developments. Monterra Ranch is a gated development of 168 lots for luxury homes off Highway 68 that runs between Salinas and the Monterey Peninsula. Mills has sold about half of the homes so far and has equity in developing new lots at Monterra.
Mr. Armanasco said that a consortium of banks is involved in the next development phase of the Monterra Ranch project. At Monterra, Sunset magazine will have a grand opening Sept. 12 of its Sunset House and will play it up to its broad readership. Mr. Armanasco said that Sunset magazine considers the Monterra project to be "one of the finest developments in California," and said that Sunset House will be the "ultimate 'green' house." That grand opening will be followed by 10 subsequent weekend showings.
Historically, Monterey County has been resilient during nationwide downturns in the real estate market. Mr. Armanasco said that Monterey County usually is "last in, first out" of any downturns in the national real estate market. Several area newspaper reports detail Mills' borrowing of millions of dollars from entities and investors, including millions from a city of Salinas employee retirement fund.
Mr. Armanasco wouldn't address reports of three lawsuits filed against Mills in the past two months other than to say that one suit was dropped. On June 9, a Perishable Agricultural Commodities Act license was issued to David Mills as a principal in Chieftain Harvesting Inc. Mr. Mills, who is senior vice president of Mills Family Farms, is listed as secretary, treasurer and vice president of Chieftain.
Pat Rynn, an attorney with Newport Beach, CA-based law firm Rynn & Janowsky LLP, said that the U.S. Department of Agriculture has broad discretion in PACA licensing, including suspending licenses or pulling licenses for non-payment to creditors, but she would not speculate on the significance of the license issued to Mr. Mills as a principle in Chieftain.
"There are a number of discussions that are taking place daily" in an effort to resolve Mills' problems, said David Armanasco, a recognized public relations figure in Monterey County.
In addition to its farming operations, Mills has substantial real estate holdings in the Monterey area.
Mr. Armanasco said that several years of low markets in produce coupled with high fuel prices that are hampering distribution have hurt Mills. Add to that a downturn in the real estate market that has made it harder to sell home lots, and both business segments have put Mills "in the eye of the perfect storm," he said.
Mr. Armanasco said that Mills Family Farms, which is based here, is fully dedicated to making good on its financial obligations and turning its businesses around.
"There has been no decision to seek protection under federal bankruptcy," Mr. Armanasco said.
The company has money invested in the Monterra Ranch in Monterey, CA, and in other housing developments. Monterra Ranch is a gated development of 168 lots for luxury homes off Highway 68 that runs between Salinas and the Monterey Peninsula. Mills has sold about half of the homes so far and has equity in developing new lots at Monterra.
Mr. Armanasco said that a consortium of banks is involved in the next development phase of the Monterra Ranch project. At Monterra, Sunset magazine will have a grand opening Sept. 12 of its Sunset House and will play it up to its broad readership. Mr. Armanasco said that Sunset magazine considers the Monterra project to be "one of the finest developments in California," and said that Sunset House will be the "ultimate 'green' house." That grand opening will be followed by 10 subsequent weekend showings.
Historically, Monterey County has been resilient during nationwide downturns in the real estate market. Mr. Armanasco said that Monterey County usually is "last in, first out" of any downturns in the national real estate market. Several area newspaper reports detail Mills' borrowing of millions of dollars from entities and investors, including millions from a city of Salinas employee retirement fund.
Mr. Armanasco wouldn't address reports of three lawsuits filed against Mills in the past two months other than to say that one suit was dropped. On June 9, a Perishable Agricultural Commodities Act license was issued to David Mills as a principal in Chieftain Harvesting Inc. Mr. Mills, who is senior vice president of Mills Family Farms, is listed as secretary, treasurer and vice president of Chieftain.
Pat Rynn, an attorney with Newport Beach, CA-based law firm Rynn & Janowsky LLP, said that the U.S. Department of Agriculture has broad discretion in PACA licensing, including suspending licenses or pulling licenses for non-payment to creditors, but she would not speculate on the significance of the license issued to Mr. Mills as a principle in Chieftain.
