
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: February 1, 2013
Partner
201-896-7095 jglucksman@sh-law.comA Colorado community has been surprised after its first organic, community-supported agricultural farm was forced to file for Chapter 7 bankruptcy protection under federal bankruptcy law.
Wellington, Colorado-based Grant Family Farms petitioned for Chapter 7 bankruptcy protection after operating in the community for 61 years. In a Chapter 7 bankruptcy, a trustee is appointed by the Office of the United States Trustee, essentially to collect and sell all property and assets that are not mortgaged or exempt. The proceeds are used to pay creditors.
The company listed a host of economic and environmental issues – including the drought of 2012 – as factors in its financial distress. Last year’s drought resulted in billions of dollars in losses for farmers throughout 80 percent of the Midwest and is considered to be the most extensive drought since the 1950s.
“Ineligibility for crop insurance coupled with millions of dollars in damage from hail storms and drought – not to mention a massive spinach recall – has left the farm in a financial situation that it’s been unable to overcome,” the company noted.
Grant Family Farms listed assets ranging between $500,001 and $1 million, while its liabilities totaled between $1 million and $10 million. Following its bankruptcy filing, the company was forced to lay off more than 50 employees.
Grant Family Farms, which operates on roughly 2,000 acres of land, said it is optimistic about the future, but cannot offer any specifics above its filing for bankruptcy. The owners said that they do not want to “churn the cogs in the rumor mill” by giving out expectations or plans.
Grant Family Farms provided produce and eggs to a number of grocery chains, including King Soopers and Whole Foods. Despite cash-flow issues in the past, many businesses associated with the farm said the filing took them by surprise.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!