U.S. meat processing company West Liberty Foods is suing meal kit company Blue Apron for allegedly failing to pay its share of costs in a free-range poultry joint venture wherein the companies purchased the assets of Crystal Lake Farms and Free Ranger.

According to the complaint, the two firms signed a term sheet in addition to a joint letter of intent to purchase for a 50/50 partnership. However, Blue Apron has allegedly failed to hold up its end of the February 2017 deal, which West Liberty Foods said has resulted in approximately $26 million in losses related to the purchase.

“Blue Apron has refused to pay for its share (50%) of the losses related to Crystal Farms,” the company further stated in the complaint.

Due to the situation, West Liberty plans to halt operations and conduct a mass layoff this fall. Approximately 110 people will lose their jobs, according to local news reports. West Liberty Foods is reportedly offering those employees relocation as well as severance packages.