Posted June 12, 2014
The U.S. Department of Agriculture (USDA) filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Allens Inc., according to an article on The Packer by Daniel Vanderhorst available here.
In February, the bankrupt company had 52 produce suppliers claiming more than $19 million under PACA, but Allens filed an objection to the claims due to suppliers’ failure to follow proper procedures.
The action alleges that Allens failed to pay 40 produce sellers $9,759,843 for 2,312 lots of produce from October 2013 to January 2014.
Allens Inc. will have the opportunity to request a hearing, but if USDA finds them guilty, the company would be barred from the produce industry for two years. Also, its principals could not be employed or affiliated with any PACA licensee for one year, and then only with the posting of a USDA-approved surety bond.
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