Multi-million PACA case developing against family - The Packer

Multi-million PACA case developing against family

06/07/2012 04:37:00 PM
Coral Beach

$imgObj.altTextCORRECTED: Dozens of produce suppliers that are collectively owed millions by stores and holding companies owned by the Alejo family of Los Angeles are in line with other creditors — including a bank with a $56 million claim — as numerous cases work their way through the federal court system.

The U.S. Department of Agriculture restricted four of the Alejos from operating in the produce industry, according to an April 3 notice from the agency that cited a $21,461 produce bill owed by Liborio Market Inc., Los Angeles, to an unnamed Florida supplier.

Ten days after the USDA sanction notice Liborio Market Inc. filed for Chapter 11 bankruptcy, listing the same principals as the USDA sanction.Those principals are: John Alejo, Enrique M. Alejo, Randy Alejo and Enrique J. Alejo. Court documents show total debts of $50 million to $100 million. The bankruptcy filing estimates 100 to 200 creditors.

John Alejo, designated in the bankruptcy filing as the principal with the authority to act for the company did not return calls for comment. The company's Perishable Agricultural Commodities Act License has been suspended.

Some produce suppliers have filed civil actions in federal court to recover money owed to them under PACA. The civil actions, filed Jan. 23, March 31 and May 2, list a variety of business entities owned by the four Alejos. Those businesses: Liborio Markets Inc., Liborio Holding Co., Liborio Colorado Holding Co., A&A Ontario Market Inc., Rancho Liborio, Triple A Grocers, Alejo Grocers and Alejo Markets.

Several individual grocery stores in California, Nevada and Colorado that are named in sequence — Liborio Markets No. 7, No. 8, No. 9, etc. — are also listed as defendants owing produce suppliers.

Produce suppliers seeking payment include: American Produce, Denver, $214,453; Federal Fruit & Produce Co., Denver, $266,646; and Valley Fruit & Produce Co., Los Angeles, $856,264.

Note on correction: The article originally included an incorrect amount owed to Professional Produce, Vernon, Calif., according to company officials. Professional Produce and Liborio Market Inc., Pasadena, Calif., entered into a payment agreement in 2011 to resolve Professional’s claim against Liborio. On Jan. 25, Professional Produce withdrew its case against Liborio.



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R Henry    
LA  |  June, 08, 2012 at 10:43 AM

Professional.....Valley....: Somebody needs a better credit manager!

CLARK    
texas  |  June, 08, 2012 at 12:43 PM

THE PRODUCE INDUSTRY NEEDS TO START STICKING TO THE 10 DAY PAYMENT. RETAIL IS PAYED IN CASH SO IT SHOULD JUST COME ON DOWN TO THE SUPPLIER AND WE WOULDN'T HAVE COMPANIES THAT ARE MILLIONS OF DOLLARS IN DEBT BECAUSE OF SLOPPY BOOKEEPING AND DON'T HAVE THE ASSET TO COVER THEIR DEBT

CLARK    
texas  |  June, 08, 2012 at 12:43 PM

THE PRODUCE INDUSTRY NEEDS TO START STICKING TO THE 10 DAY PAYMENT. RETAIL IS PAYED IN CASH SO IT SHOULD JUST COME ON DOWN TO THE SUPPLIER AND WE WOULDN'T HAVE COMPANIES THAT ARE MILLIONS OF DOLLARS IN DEBT BECAUSE OF SLOPPY BOOKEEPING AND DON'T HAVE THE ASSET TO COVER THEIR DEBT

Henry fulford    
Rome Ga.  |  June, 08, 2012 at 01:32 PM

Ytou should start looking for hidden assets and money. The family several months ago what the real condition was most of the tlme the court appointed attorney is only interested in prolonging it so he can get paid.....

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