A TOP fruit producer and supplier to major retailers across the United States has filed for bankruptcy, placing blame on inflation and the weather for the move.
Prima Wawona, headquartered in California, initiated voluntary Chapter 11 proceedings last week.
The filing comes as part of an agreement reached amongst the company’s top lenders.
Specifically, the fruit supplier is moving forward with a transaction that will convert existing lender debt into equity, or allow for a sale to a third-party buyer.
In a statement announcing the bankruptcy filing, Prima Wawona insisted the company is still “dedicated to delivering consistent and superior-quality stone fruits to its customers and consumers.”
"Over the last several years, Prima Wawona has grown tremendously,” Chief Esecutive Officer John Boken said.
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“We recently completed the 2023 harvest season, during which our team grew, packed and delivered more fruit across more acres than ever before.”
However, he noted that increasing costs as a result of inflation, “significant headwinds,” as well as “weather-related impacts,” caused the company’s current capital structure to no longer be sustainable long term.
To keep and build on Prima Wawona’s market position, the company “proactively evaluated options.’
"We are pleased that our lenders have reached an agreement and fully support this ownership transition that charts a path forward to strengthen Prima Wawona and position the business for long-term success,” Bokeh continued.
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“The court-supervised process allows for the possibility that a qualified third-party buyer will emerge as the owner of the business as an alternative to our lenders. The entire Prima Wawona organization is focused on working through this process as quickly as possible."
Prima Wawona prides itself on supplying the “largest, most diversified selection of conventional and organic stone fruit” across the country.
It supplies fruits such as peaches, plums, nectarines and apricots to various supermarkets and retailers such as Aldi, Walmart, Kroger, Wegmans, Whole Foods, Hannafords, and more.
The company uses sustainable irrigation practices, solar panels, and natural pest methods, per the company site.
Prima Wawona has over 150 years in the fruit supply industry.
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