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California-based poultry company to shut down after having "struggled in the current state of the industry."
November 1, 2018
Zacky & Sons Poultry (Zacky Farms) announced on its website this week that it will be winding down its operations, which will completely cease on Jan. 19, 2019.
Fresno, Cal.-based Zacky Farms said it has "struggled in the current state of the industry, and it has been impossible" for it to continue profitably. Zacky Farms added that it has been "diligently engaged in seeking business and capital; however, those exhaustive efforts have been unsuccessful."
Last June, Great Rock Capital, an asset-focused commercial finance company specializing in middle-market lending, announced the completion of a $25 million secured term loan for Zacky & Sons Poultry, a vertically integrated grower, processor and distributor of premium poultry products. In addition, Great Rock Capital partnered with GemCap Solutions, an innovative lending firm that provides senior-secured, commercial asset-based loans, which provided a $16 million revolving loan.
At the time, Great Rock Capital said the loans would enable Zacky Farms "to refinance existing senior indebtedness and fund capital expenditures to expand its production facilities to support the company’s growth."
“We are excited about our partnership with Great Rock and what it entails for the future success of our business. This financing provides Zacky’s with the capital needed to drive our continued growth as we remain focused on our commitment to bringing our customers the best quality of poultry one can buy,” Lillian Zacky, founder of Zacky & Sons Poultry, and Tom Dahlen, Zacky Farms chief executive officer, said in June.
According to the Fresno Bee, the company told workers Oct. 29 that its two plants — one in Fresno and another in Stockton, Cal. — were closing. Reasons for the announcement are not clear.
This is not the first time Zacky Farms has struggled. In 2001, it sold its chicken business to Foster Farms to focus on turkey operations, and in 2012, it filed for bankruptcy protection, which resulted in the sale of its Integrated Grain & Milling division in Hanford, Cal., to Western Milling.
Founded in 1955, Zacky Farms is a fourth-generation, family-owned business. The company is a vertically integrated grower, processor and distributor of premium poultry products and has converted 100% of its product to antibiotic free, cage free or organic.
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