Meat & Poultry Briefs: Rising costs hurt Pierre, Pilgrim's Pride
July 16, 2008
Meat & Poultry Briefs: Citing raw material price increases, prepared meats and entrees processor Pierre Foods Inc. said it voluntarily filed for Chapter 11 bankruptcy relief to restructure debt. "We have taken -- and will continue to take -- steps to strengthen and streamline operations and right-size Pierre's cost structure in order to avoid placing the burden of our inflated raw materials costs solely on our customers," said Norbert Woodhams, chief executive officer. "... We expect to emerge from bankruptcy as a stronger, more competitive company, well positioned for growth and enhanced profitability." Pierre is based in Cincinnati and operates plants in Cincinnati and Claremont, N.C. . . . Pilgrim's Pride Corp., Pittsburg, Texas, said rising costs will force the company to consolidate its tray-pack chicken operations in El Dorado, Ark., into six other case-ready food processing sites. In conjunction, the company will eliminate as many as 600 of the 1,215 positions in El Dorado. Officials also said they intend to close an El Paso, Texas, distribution center, one of seven DC's in Texas, Arizona and Utah.