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Processing company SK Foods LP filed for chapter 11 bankruptcy last week, the second Californian produce trader to go under in a fortnight, following the collapse of Ballantine Produce.

The company, a tomato processor, lost a bid to have US$600,000 returned after it was seized last year for a former broker who admitted to paying bribes to major food company buyers, reported the Monterey County Herald.

Chapter 11 bankruptcy will allow SK Foods to continue trading.

Australasian company Cedenco Foods, owned by the same Salyer family trust as SK Foods, said the bankruptcy would not affect its business, as the two had totally separate finances.

“Obviously this news from the US is very disappointing for SK’s customers, employees and suppliers,” said Cedenco’s managing director Richard Lawrence in a press release.;

“We hope that a quick resolution can be found through a change in ownership, to allow both plants to operate this coming tomato processing season.

“Cedenco Foods has had a successful first 6 months of our financial year with the season in both Australia and New Zealand pleasing. We are currently forecasting a group year end result that will surpass budget.”