Suitors are lining up to acquire Chicago-based distributor The Plitt Co., which in late May was placed into receivership by its primary lender. American Chartered Bank has accused the company’s majority owner of fraud and misappropriating funds.
A company source told SeaFood Business this week that it has received 23 non-disclosures, including two letters of intent to buy the company. The spokesman says Plitt is still a “viable business” and is optimistic that a new deal will come forward.
The bank contends that Plitt executives overstated the value of the company’s collateral to back loans from the bank, which claims Plitt is worth only half of the money it owes. The bank filed two lawsuits, one against the company and another against CEO Bob Sullivan Jr., one of the company’s three partners, and CFO Steven Wegh for fraud. Both men have since left the company.
The bank then placed Plitt in receivership, a move that assures its suppliers will be paid.
Plitt began selling seafood in 1916 to restaurants, retailers, caterers and food suppliers nationwide. It owns the Sailor Girl, Ella Bay, Willow Creek and Even Keel Seafood brands. The company operates facilities in Chicago; Kent, Wash.; Victoria, British Columbia; Homer, Alaska; Boston and Poquoson, Va.
“We are continuing to source consistent and high-quality product and to serve our customers the best way we can,” reads a statement on Plitt’s Web site. “Our plan is to serve the Midwest for another 100 years.”
