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Atmore Peanut Processor Coastal Growers Files Bankruptcy
November 30, 2024
Atmore peanut processor Coastal Growers, LLC has filed Chapter 11 bankruptcy in U.S. Bankruptcy Court Southern District of Alabama (Mobile).
In their court filing, Coastal estimated that they owe between $100 and $500 million to between 100 and 199 creditors. The company estimated assets at $50 to $100 million.
Coastal Growers opened their $90 million peanut processing facility in Atmore in February 2022. At the time, the company was owned by a cooperative of 195 farmers who lived mostly in Alabama and Florida, many in the North Escambia area.
The 400,000 square foot facility sits on 60 acres in the Atmore Industrial Park that used to be a cotton field.
NorthEscambia.com photos, click to enlarge.
Comments
18 Responses to “Atmore Peanut Processor Coastal Growers Files Bankruptcy”
Sadly, the farmers are not considered creditors in this bankruptcy filing. The farmers are considered owners of Coastal. The peanut farmers collectively lost tens of millions of dollars on Coastal. That money is lost. It’s gone. What’s more – the tens of millions the farmers lost when they delivered their peanuts to Coastal are not included in these bankruptcy filing numbers. The farmers, as owners of Coastal, were left holding the bag expecting a profit to equal, at the very least, the market value for their peanuts. That “profit” apparently never materialized. It is a massive blow to the peanut farming community that is not being accounted for.
If you grow Peanuts you get paid in Peanuts?
To respond. — yes many of those that are owed money ARE the farmers. Even the smallest of the farm investors have lost over 200,000!!!
The Boss gets the money and the employees get the shove. Sad.
follow the money – Q
Sounds American.
My family owns farmland previously used for my father’s cattle operation until he died in023 C R Pate. And we have planted crops for cattle feed in the past 50 yrs and are friends to lots of the investors in this scam. I am a business minded and business owner with my family and probably need to shut up but an HONEST investigation needs to find out how many people involved with handling this got kickback from construction, equipment purchases,,family liked scams and other shady deals because this should have worked for our farmers and the local community. I heard the CEO gave himself a $350.000 raise the first nonprofit year of operation Figure it out and hold them accountable!
What a waste of time and money! They did all that work installing that new railroad spur and never even used it. How much money did the city lose on this debacle?
Brown Precision in Rivercane is the same way. The place is all but abandoned.
Wow…lol..Who was the Manager of this Train wreck???
The numerous creditors mentioned in the article are most likely not the shareholder farmers. The problem is that Coastal is owned by shareholder peanut farmers who also deliver their peanuts to Coastal. As owners of Coastal they supposedly share profits, as suppliers of Coastal they get nothing. So, if there are no profits, then the shareholder farmers are set up to get nothing at all for the peanuts they deliver.
I hope that the numerous creditors mentioned in the article are not farmers that sold their peanuts to this company and have not been paid.
Wow. Would like to hear the reasons why they went bankrupt within three years of opening a brand new facility.
DAMN!
The farmer doesnt get paid for his peanuts
But he still pays his help
The owner of the field doesnt get his cut, but he still has to pay the taxes
HOW??? can a company go in such debt in a short time
The first thought in any Chapter 11 Bankruptcy Reorganization Plan should be the first line in any Income Statement – Revenue. Coastal’s only source of revenue is from peanuts, and peanuts only come from peanut farmers. For three crops the shareholding peanut farmers did not receive market price for their peanuts at Coastal, and they are not likely to fall for yet another faulty Coastal Growers sales pitch. This is valuable information to consider with any Bankruptcy Reorganization Plan.
If Coastal owes at least $100M, and they have at most $100M in assets, then the shareholders end up with zero on their initial investment at best. Simple math right
there in the court filing.
Peanut farmers as shareholders in Coastal have apparently lost their initial investment, and the shareholding peanut farmers have lost market price for three years. How can peanut farmers be compelled to bring revenue in the form of peanuts to this particular company again?
Believe it or not but I believe someone got very rich off this deal here. Maybe several people made a chunk of money off this deal.
Very sorry to see this and wonder why. Anytime a business goes under there are so many other businesses and people it effects.
Haven’t they been closed for months? I know a lot of folks who were layed off or quit due to the failing of the company. I haven’t been by there myself, so not sure, but I heard they had closed already
How do you get yourself in debt that high in such a short period of time. Sounds like the Federal Government is running the operation.