Zacky Farms, the US-based poultry company that filed for bankruptcy last year, has announced that it will be selling its assets to The Robert D Zacky and Lillian D Zacky Family Trust, a move which will protect nearly 1,000 jobs.
The trust had emerged as the successful bidder of the Chapter 11 auction, which was held for all the assets of Zacky Farms.
The deal, which is estimated to be valued at $31.6m, will ensure that the company will remain in the hands of the Zacky family. The transaction is subject to approval by the bankruptcy court.
Zacky Farms chief restructuring officer Keith Cooper said that with this deal, the operations and jobs of Zacky Farms are preserved.
"Further, this result confirms the commitment of Lillian Zacky and Scott Zacky to the continued operation and turnaround of Zacky Farms," Cooper added.
On 8 October 2012 Zacky Farms filed for bankruptcy blaming high feed costs. The Robert and Lillian Zacky Trust had provided the financing to keep the company operational since the bankruptcy filing.
Zacky Farms, headquartered in Fresno, California, is a vertically integrated poultry company that has been in operation for over 70 years.
