Allens' Losses Add Up

by Arkansas Business Staff  on Monday, Jan. 27, 2014 12:00 am  

Between October and the end of 2013, Allens Inc., the Siloam Springs cannery, lost $14.1 million.

The figure comes from Allens’ monthly operating report, which was filed in its Chapter 11 bankruptcy case.

While in bankruptcy, Allens’ sales have dropped. In October its sales were $37.2 million; a month later they fell to $33.7 million.

For December, sales plummeted even further, to $28.4 million, the filing shows.The monthly report also lists compensation paid to officers and directors of the company.

Allens’ chairman of the board, Roderick “Rick” Allen, who controls 61.39 percent of the company, was paid $23,760 in November and nearly $19,000 in December.

His son, Joshua C. Allen, the CEO, received $52,659 in November and $42,044 in December. And Rick Allen’s other son, Nicholas E. Allen, executive vice president, was paid about the same as his brother.

As you know, Allens still is moving forward to sell “substantially all the operating assets” to Seneca Foods Corp. of Marion, N.Y., for $148 million.

The agreement calls for Seneca to serve as the “stalking horse” bidder in an auction scheduled for Feb. 3, meaning Seneca has the opportunity to match any other bids Allens might receive.

When Allens’ filed Chapter 11 in October, its debts were reported at $294.5 million.

The family-owned vegetable processor and food-service provider listed assets totaling $294.5 million.



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