Pilgrim’s Pride files for bankruptcy

| 12/2/2008

A mega chicken-processing company that many truckers haul for filed for Chapter 11 bankruptcy protection on Monday, Dec. 1.

Pilgrim’s Pride, which is headquartered in Pittsburg, TX, asked the court to approve a $450 million financing agreement. The company officials say they could continue normal operations if the agreement is approved.

Pilgrim’s Pride is the biggest chicken-processing company in the U.S. and employs about 48,000 people, according to media reports.

Analysts say high feed prices, low poultry prices, and the more than $1 billion the company paid to take over a competitor all contributed to the bankruptcy.

USA Today reported that the Chapter 11 filing will help the company to sell assets because buyers will have a better idea of Pilgrim Pride’s prospects.