Court filings: Pure Foods in Kingsport goes bankrupt
A year after Tennessee Governor Bill Haslam and other state dignitaries helped Pure Foods open their new multi-million dollar plant and corporate headquarters to Kingsport, the company has filed for Chapter 11 reorganization bankruptcy protection.
Court records obtained by News 5 show the company owes over 100 creditors and has more than $1 million in liabilities.
It has been a tumultuous 12 months for the Canadian snack foods manufacturer, capped by a production stoppage in October at its $22 million complex in the Tri Cities Crossings area near Colonial Heights at Gateway Commerce Park.
The promise of 275 new jobs came with the Pure Foods announcement but CEO John Frostad said in a statement last year that plant production was suspended as the company hired a chief restructuring officer and its Canadian operations were consolidated to Tennessee.
Frostad told the Associated Press that the company is looking for a prospective buyer to continue operating the Kingsport facility.
Court records confirm that a business that recently relocated to Kingsport, Tennessee has filed for Chapter 11 reorganization bankruptcy.
Production at Pure Foods was put on hold last fall.
The healthy snack maker had just opened a new headquarters and manufacturing location several months earlier at Tri Cities Crossing.
When it opened, company officials said they expected several hundred job opportunities.
We were told the company had $22 million invested in the Kingsport operation, including the facility and equipment.
Now the federal bankruptcy court papers in greeneville say the company estimates more than a million dollars in liabilities and owes more than 100 creditors.
Those include the city of kingsport, appalachian power company, atmos energy and charter communications.