Zacky Farms, the Fresno-based poultry company that filed for bankruptcy last fall, will remain in the hands of the Zacky family under the terms of a $31.6 million sale.
In a bankruptcy auction last week in San Francisco, the Robert T. and Lillian D. Zacky Trust submitted the highest bid for the company. The proposed sale was announced by the company in a statement Monday. The Robert and Lillian Zacky Trust has provided the financing to keep the company running since the Oct. 8 bankruptcy filing.
A U.S. District Bankruptcy Court judge must still approve the sale of Zacky Farms -- one of the nation's largest producers of turkeys -- to the trust. A hearing on the proposed sale is set for Monday in Sacramento. The family-owned company not only runs its turkey processing plant in Fresno and another processing center in Stockton, but also operates a number of its own turkey farms in the central San Joaquin Valley.
Court records report that the Zacky Trust bid amounts to $31.6 million. That includes $26 million in credit that the trust has already extended to the company, as well as an agreement to rehire "substantially all of the employees." The rehire agreement is valued at about $5.6 million. In its initial bankruptcy documents, the company reported that it employed about 1,000 people in Fresno, Tulare, Kings, San Joaquin and Los Angeles counties.