A Texas based poultry company that operates in Northwest Georgia has filed for Chapter 11 bankruptcy. Pilgrims Pride has poultry growers across Northwest Georgia and operates a hatchery and feed mill in Calhoun.
Chapter 11 means that the poultry producer will not be liquidating their assets but will be reorganizing in order to restructure their debt.
Earlier this year the company announced the cuts of 335 jobs, nine of which were in Northwest Georgia.
The Pittsburg, Texas-based company sought the bankruptcy protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas on Monday.
The company has been saddled by debt due to the acquisition of its rival Gold Kist Inc. and has had to extend its temporary credit line three times since September.
It’s also hurting due to volatile feed prices and an oversupply of meat on the market, which keeps prices down.