The U.S. Department of Agriculture has filed an administrative action under the Perishable Agricultural Commodities Act against Siloam Springs, Ark.-based Allens Inc.
The Packer reported in February that the bankrupt canned food company had 52 produce suppliers claiming more than $19 million under PACA, but Allens had filed an objection to $18.3 million of the total based on suppliers’ failure to follow proper procedures.
The action now filed alleges that Allens failed to pay 40 produce sellers $9,759,843 for 2,312 lots of produce from October 2013 to January 2014.
Allens Inc. will have an opportunity to request a hearing. If the USDA finds that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years and its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.