Chiquita Brands International has suspended its quarterly dividend and said it may sell its shipping fleet in a bid to reduce its debt and invest in more profitable assets.

The company has hired global corporate and investment bank Fortis Securities and is considering various arrangements for its shipping lines, including selling and leasing back its own fleet, outsourcing or finding long-term shipping partners.

Chiquita chairman and CEO Fernando Aguirre said: “Our great white fleet has represented a strong competitive advantage for Chiquita for many years, and continuing to excel in cold-chain management - delivering our high-quality fresh products quickly and efficiently - will remain critical to our company. However, we believe there is an opportunity to enhance shareholder value while maintaining high quality and competitive long-term operating costs by partnering with an expert shipping service provider that can grow with Chiquita.

“This would allow us to focus our efforts and resources even more on strengthening customer relationships and providing healthy, fresh foods to consumers. In addition, an asset sale would generate significant capital, which would be used primarily to reduce debt, as well as to invest in new growth opportunities.”

The $17 million saved from cancelling cash dividends will also be directed toward alleviated debts incurred after the company’s purchase of Fresh Express last year and other recent difficulties, Aguirre added.

He said Chiquita’s third-quarter results are likely to be affected by the markedly lower banana prices and oversupply situation plaguing most major markets, as well as the new concerns surrounding the safety of fresh spinach in the US.

Additional funds will therefore be invested in restoring consumer confidence in the quality of its Fresh Express products, he said.

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