According to a Reuters news story, one of the biggest independent food distributors in the New York City area has filed for bankruptcy and has agreed to sell its assets to one of the largest privately held U.S. companies.
Associated Wholesalers, Inc. (AWI), parent of White Rose, Inc. filed for Chapter 11 protection Tuesday and C&S Wholesale Grocers, Inc. is expected to obtain a substantial portion of its assets. C&S will make the initial bid for the assets and set a floor for an eventual sale at a court-supervised auction. The 12th largest privately held company serves about 5,000 stores and has customers including A&P, Giant, Safeway, Stop & Shop and Target.
It is reported that AWI ran into trouble in fiscal year 2013 when it posted a loss due to an eroding customer base brought on by fierce competition and tighter margins.
Shippers are encouraged to contact Western Growers Trade Practices Director Tom Oliveri at 949 885-2269 to make certain that you are properly maximizing your rights and remedies under PACA Trust should that become a required course of action.
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