Allens Inc. Files for Chapter 11 Bankruptcy Protection

Siloam Springs-based vegetable leader Allens Inc. filed for Chapter 11 bankruptcy protection in an Arkansas court on Monday, but has received a commitment from its first lien lenders for “debtor in possession” financing to support its continued operations.

According to a company news release, Allens filed voluntary petitions in the United States Bankruptcy Court for the Western District of Arkansas.

According to the release, Allens will continue to operate the business as usual during the reorganization process, with the support of its first- and second-lien lenders, focusing on its core canned vegetable markets.

In addition, Allens, a family-owned and operated business founded in 1926, will be exploring strategic alternatives, including the sale of all or part of the operating business, or emergence from the reorganization process as a financially sound, standalone company.

Allens is also seeking a buyer for its frozen vegetables business in Montezuma, Ga., which specializes in frozen breaded vegetable products and Southern-style frozen vegetables.

 “Allens has a long and proud history and we intend to use the reorganization process to become a stronger, more competitive business,” Josh Allen, Allens president and CEO, said in the release. “We remain firmly committed to serving our customers and providing consumers with great-tasting, affordable and high-quality vegetables. We appreciate the support of our suppliers and the ongoing dedication of our employees, whose hard work is critical to the future of our business.”

Allens has also asked for authority to continue existing customer programs and intends to pay suppliers for goods and services provided after today’s filing, according to the release.

Alvarez & Marsal is serving as Allens’ chief restructuring officer and Lazard Middle Market is serving as its investment banker, according to the release. Greenburg Traurig and Mitchell Williams are serving as legal advisors.