The Allens, Inc., vegetable canning company in Siloam Springs filed for bankruptcy Monday in federal court, after claiming to be at least $100 million in debt with 3,627 creditors, according to court documents.
The company released a statement the same day saying its operations would continue as usual “during the reorganization process.”
Wayne Mays, the Chamber of Commerce President and CEO, said his first concern was the affect on the community.
“The best news we can get was they are going to continue to operate as usual,” Mays said. “They are a huge customer for the city and whatever impacts those companies, impacts our city.”
“Our city is always looking for ways to help our industry,” he said.
As part of the reorganization, Allens is selling off its frozen vegetable business, based in Georgia, and is exploring “a potential sale of all or part of the operating business” of its canned vegetable operations, according to the statement.
“It appears to us that they are just taking a necessary step for their finances to protect themselves,” Mays said. “But they aren’t going to interrupt their operations and its not going to significantly impact individuals in our town.”
The company with the largest unsecured claim against Allens is Ball Metal Foods Container Company, of Broomfield, Colo. The Siloam Springs company owes Ball Metal $46.3 million, according to court documents.
Allens also owes Crown Cork and Seal USA, Inc., of Philadelphia, $18 million. Hartung Brothers, Inc., in Madison, Wisc., are owed $7.7 million by Allens, Inc., the court documents state.
Allens officials said they do not expect market prices to rise because of the bankruptcy, and the 1,000 workers at the company will be unaffected.
Click here for court filings and other documents related to Allens.