An 86-year-old New Jersey grower-shipper has closed up shop and is liquidating assets to pay up to $3.3 million to 47 produce suppliers.
Wm. Consalo & Sons, Vineland, N.J., ceased operations early this year, said attorney Eugene Malady. Calls to the company officer were not immediately returned.
“Anytime a business closes there are a number of factors involved,” Malady said April 5. “This should be an orderly process and we expect to be able to pay 100 cents on the dollar, based on my valuation of the assets available.”
Malady said the assets include equipment and growing land. He also said the payout to creditors will depend on buyers coming forward to purchase the assets of the family-owned company.
The provisions of the Perishable Agricultural Commodities Act are in effect for the case and no bankruptcy is planned, Malady said.
According to court documents, the company has until May 1 to notify creditors. Creditors have until May 31 to file PACA claims. U.S. District Judge Joseph Irenas set the calendar for the PACA claims with an Aug. 23 distribution date for the funds generated by the liquidation.
The PACA procedure was set in motion in late March when a Vineland-based transportation company — John Molinelli Inc. — filed suit seeking $38,000 for produce sold to Consalo in December and January.
William Consalo founded the company in 1927. His four sons, William, Anthony, Augustus and Vincent, helped him build the business, and their sons were in executive positions at the time the firm ceased operations.