The equipment and inventory formerly owned by bankrupt Quantum Foods in three Bolingbrook facilities have been sold as a turnkey operation to West Liberty Foods, L.L.C. 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.
"West Liberty Foods' continued growth has put us in a position to make this acquisition," said Ed Garrett, President and CEO 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 food safe products we are known for."
West Liberty is planning to start up meat processing operations at the Bolingbrook location in the next 3O days. In addition, the company, which plans to have 400 to 600 employees at the Bolingbrook sites within the next 12-14 months, will re-brand the facilities under the West Liberty Foods name.
Former operator Quantum Foods 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 its business operations, leading the company to file for Chapter 11 bankruptcy on February 18, 2014 in the Delaware Bankruptcy Court.