WILMINGTON, Del.- A source tells WBOC that South Korean poultry giant Harim is the apparent winner in the bidding process for Allen Family Foods, which filed for Chapter 11 bankruptcy last month.
The source, who is familiar with the bankruptcy proceedings, also said it appears that Harim intends to continue operations at Allen's facilities, including its poultry processing plants in Cordova, Md. and Harbeson, Del. If Harim does take over Allen's, is unclear if Allen's employees will lose their jobs or become employees of Harim.
The agreement is subject to final approval during an official bankruptcy auction scheduled to be held later this week in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
This latest news comes after Mountaire Farms announced early Tuesday that it had dropped its efforts to buy Allen's assets.
The Seaford-based Allen's filed for Chapter 11 bankruptcy on June 9, blaming higher feed prices and falling chicken prices. The company said it intended to sell most of its assets to Mountaire Farms.
Under the proposed agreement, Mountaire Farms, through its affiliate, Seaford Milling Company, would have acquired substantially all of Allen's, with the exception of the corporate owned grow-out farms and related farmland, which will continue to be owned by Allen's.
Despite pulling its bid for Allen's, Mountaire Farms said in a statement that it will continue with its plan to expand its own facilities.
The company added that as soon as practical, it will be adding jobs in the community under an expansion plan looking to add employees, growers and other service needs.
