Contessa Premium Foods on Thursday announced that it has filed for Chapter 11 bankruptcy protection.
The San Pedro, Calif., company, which produces frozen shrimp and ready-to-cook seafood meals, attributed the restructuring to its state-of-the-art processing plant in Commerce, Calif. Due to the global financial downturn and “intense competition” from multi-national corporations, Contessa has been unable to profitably use the full capacity of the plant, said the company.
When it opened in 2007, the Green Cuisine™ plant was billed as the world’s first environmentally responsible, LEED-certified frozen-food manufacturing plant. The 4-million-cubic-foot facility cost more than USD 35 million to build and was expected to produce up to 150 million pounds of product in its first year.
Contessa’s major creditors are supportive of the company’s reorganization and are working with the firm to maximize value for all stakeholders, said the company.
“The agreement with Wells Fargo provides adequate liquidity for normal operations to continue without any disruptions to our customers, vendors and employees,” said Contessa CEO John Z. Blazevich.
“Our restructuring process will strengthen our financial health and long-term growth and have Contessa resume the leadership and innovation we have been recognized for globally,” he added.
