THE equipment and inventory in three Bolingbrook, Ill., facilities formerly owned by bankrupt Quantum Foods have been sold as a turnkey operation to West Liberty Foods LLC in a $12.7 million transaction coordinated by Tiger Group, City Capital Advisors LLC and Schneider Industries.
The acquisition of the equipment and inventory was approved on June 19 by U.S. bankruptcy Judge Kevin J. Carey, sitting in the district of Delaware.
In separate transactions unrelated to the bankruptcy but also directed by Tiger and Schneider, West Liberty has agreed to either purchase or lease the three Bolingbrook buildings that housed Quantum's operations.
The company plans to purchase the 220,000 sq. ft. production facility and 80,000 sq. ft. culinary facility and agreed to lease the 250,000 sq. ft. cold storage distribution center.
West Liberty is expecting to start up meat processing operations at the Bolingbrook location in the next 30 days.
"West Liberty Foods' continued growth has put us in a position to make this acquisition," said Ed Garrett, president and chief executive officer of the West Liberty, Iowa-based company. "The Quantum facilities are well positioned to support our existing growth plans and will allow us to continue to offer the high-quality, innovative and safe food products we are known for."
In addition, the company, which plans to have 400-600 employees at the Bolingbrook sites within the next 12-14 months, will rebrand the facilities under the West Liberty Foods name.
Quantum was launched more than two decades ago as a hand-cut beef butcher. The company ultimately grew to an approximately 1,100-employee operation, supplying commercial accounts as well as overseas military bases.
However, the recent withdrawal of troops in the Middle East, along with the loss of top retail clients, hurt Quantum's business operations, leading the company to file for Chapter 11 bankruptcy on Feb. 18, 2014, in the Delaware Bankruptcy Court.