The filing should no affect on the Zartic plant on Lavender Road, company officials said.
“There are no plans to close any plants. Business will operate as normal,” said Jed Repko, a Pierre spokesman.
Pierre closed the Zartic plant in Cedartown in February, affecting 153 employees.
In a news release, Pierre Foods Chief Executive Officer Norbert Woodhams said, “As a result of rising raw material prices experienced throughout our industry, it is necessary for Pierre Foods to create a capital structure more appropriate for both our operations and the current marketplace. We have taken and will continue to take steps to strengthen and streamline operations and right-size Pierre’s cost structure in order to avoid placing the burden of our inflated raw materials costs solely on our customers.”
In January, Pierre reported net revenues of $486.1 million, an increase of 46.5 percent for the period from Dec. 2, 2006, to Dec. 1, 2007. It attributed sales of acquisitions, including the Cedartown Zartic, as the primary reason for the increase.
In June, citing increasing raw material prices and deteriorating market conditions, Pierre notified Wachovia Bank, the administrative agent for its for its senior credit facility, that it was “not able to meet the financial covenants contained in the facility for the fiscal quarter ending March 1.” Pierre acquired Zartic in December 2006.
Post a Comment