The statement said, “H-E-B strongly disagrees that it is to blame for Delta’s poor performance and will vigorously contest Delta’s lawsuit. H-E-B is confident that after a full airing of the facts, Delta’s unproven assertions will be found meritless.”
HEB said in the statement Delta Produce couldn’t keep up with the changing market.
“Delta was a longtime supplier to H-E-B and H-E-B regrets that Delta has been unable to weather the recent economic downturn and changes taking hold in the produce marketplace.”
HEB did not return a request for comment.
Delta Produce’s attorney, Randall Pulman of Pulman, Cappuccio, Pullen & Benson LLP, San Antonio, told the Express-News Delta Produce has assets of about $8 million and liabilities of about $8 million. The company expects to sell its assets, including a fleet of long-haul trucks, to pay its creditors.
As of early January, three companies filed claims against Delta Produce and Superior Tomato-Avocado under the Perishable Agricultural Commodities Act:
• Willson Davis Co., San Antonio, for invoices between Oct. 24 and Dec. 23 totaling $481,058;
• Rio Bravo Produce Ltd. Co. LLC, Edinburg, Texas, for invoices between Oct. 24 and Dec. 27, totaling $71,191;
• Muller Trading Co. Inc., Libertyville, Ill., for a Dec. 16 invoice for $24,573.