By Zack Stovall
Arkansas News Bureau
LITTLE ROCK — Affiliated Foods Southwest Inc., a wholesale food distribution company with its only distribution center in Little Rock, filed for chapter 11 bankruptcy Tuesday, the company announced.
The company laid off half of the 530 employees at its Little Rock distribution center Tuesday, and the remaining jobs likely will be phased out over time, Affiliated Foods spokesman Al Miller said.
“Although we filed for chapter 11, we perceive and have taken steps toward liquidating,” said Miller.
The company also employees about 900 people at 400 supermarkets it services in Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee and Texas. All of the stores are being sold, Miller said.
According to Miller, relations with company’s primary lender has continued to deteriorate, forcing it to drastically reduce inventory necessary to supply its customers.
The company said the Governor’s Dislocated Workers Task Force will begin assisting those laid off by Affiliated immediately.
“Unfortunately, (the task force) has been getting more and more experience these days,” said Matt DeCample, spokesman for Gov. Mike Beebe.
“The task force’s job is to go in and help employees deal with the shock, helping them with learning new skills, finding job opportunities,” DeCample said. “Our primary concern is the workers, and getting them into play elsewhere.
“It’s unfortunate for Affiliated Foods. They have a long Arkansas tradition.”
The tradition spans more 50 years in Arkansas and elsewhere, said Miller, who himself was a senior vice president with the company for 40 years before his retirement in January.
Long-time CEO and chairman Jerry Davis died in November 2004 after complications from heart surgery.
In its bankruptcy filing, Affiliated Foods lists between $10 million and $50 million in assets and between $100 million and $500 million in liabilities.
The company had $730 million in revenue for fiscal 2008, its statement Tuesday said, down from the $763.2 million it reported for fiscal 2007.
