The U.S. Department of Agriculture has initiated an administrative action against a Mississippi produce company and cited two Colorado grocery stores for failing to pay for fresh produce under the Perishable Agricultural Commodities Act.
The USDA’s Agricultural Marketing Service reported the administrative action against Mid-South Produce Co. Inc., Grenada, Miss., related to alleged failure to pay seven produce sellers a total of $346,880 from December 2010 through May 2013.
Mid-South can request a hearing. The USDA could bar the company from the produce industry for two years.
In another PACA action, the USDA cited two Liborio Markets in Colorado for failing to pay 27 suppliers a combined total of almost $760,000 for produce. The Colorado Springs grocery stores are part of the Liborio Markets Inc. operations, which have been involved in a bankruptcy case since 2012.
Both grocery stores are banned from operating in the produce industry until Nov. 26, 2015.
Because of the PACA citations on Liborio Markets No. 9 and 11, the corporate principals and Liborio Holding Co. are banned from being employed or affiliated with any PACA licensee until Nov. 26, 2014.
The principals can apply to re-enter the industry if they post USDA-approved bonds after that date. The principals listed by the USDA are John Alejo, Enrique J. Alejo, and Enrique M. Alejo.
A federal bankruptcy judge ordered the Alejo family to take their company into Chapter 7 liquidation in July 2012. The bankruptcy filing showed estimated debts to be between $50 million and $100 million and the number of creditors between 100 and 200.