Cimino Bros. files for bankruptcy

12/18/2009 01:45:19 PM
Dawn Withers

Cimino Bros. Produce, Salinas, Calif., is in Chapter 11 bankruptcy proceedings, with about 200 creditors owed from $10 to $50 million.

 

According to court documents filed Nov. 24, company partners Armand Cimino, who has a 25% stake, Stephanie Cimino, who holds another 25% stake, and Vincent Cimino, who holds a 50% stake in the company, voted unanimously Nov. 14 to enter Chapter 11 bankruptcy protection.

“This reorganization is important, not only to the general credit body and my family, but also our many employees in the United States and Mexico, as well as the Mexican growers of produce,” Vincent Cimino said in the court filings.

Cimino Bros. did not return requests for comment Dec. 18.

Cimino Bros. is year-round grower-shipper primarily of broccoli with operations in Mexico under Cimino Bros. Co. Produce Mexico, formed in 1998. The company developed the largest national network of Asian foodservice distributors, according to court filings. The company also owns a cooler in Laredo, Texas, and reported strong growth between 2004 and 2007 when revenues jumped from $14.6 million to $20.7 million.

But heavy rainfall and low yields in 2007 “restrained the growth path” the company aimed for that year, according to court filings, and grower advances coupled with low yields and bad weather affected the 2008 growing season and the company’s cash flow.

Problems with weather in Mexico and a carton supplier cost Cimino Bros. $6.5 million in 2008 and a lawsuit, according to court documents, further affected cash flow for the year and money needed for capital expenses. This year, Wells Fargo, which is owed more than $6 million, pulled its funding from Cimino Bros., according to court documents. The company was unable to secure additional bank loans in time leading to an ongoing dispute between the company and Wells Fargo over seized accounts.



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the justicer    
salinas  |  August, 03, 2011 at 10:10 PM

not only have that in mexico are in debt to the Treasury as well as non-payment of taxes in May 2010 to the date of August 2011, have not paid payroll or providers, or farmers

mexican growers    
mexico  |  August, 15, 2011 at 06:54 PM

be approximately a total of 22 million pesos in Mexico, between suppliers and growers are not able to stand up to pay their debt. product will not sell because they pay only say that then and never pay, also has a lot workers' demands

green grower    
Mexico  |  September, 26, 2011 at 12:31 PM

Cimino abandonded facilities in Mexico, leaving no money to suppliers of raw materials, property and income of workers who ended their relationship did not work, no one of the owners of the face and be able to come and fix the sea ​​issues left pending, if seen in Mexico let them know you are waiting to pay what they owe.

green.growers    
mexico  |  October, 02, 2011 at 09:59 PM

As you may want to rent a machine that is seized by both suppliers and by growers,! Careful, because everything that is or belonged to Mexico CBP is attached, do not buy or rent problems, should give the solution and face first world problems they left in Mexico

Transporter    
Indiana  |  October, 05, 2011 at 10:35 AM

They also left transportation providers with A LOT of unpaid freight charges!!!

green.growers    
mexico  |  October, 15, 2011 at 03:43 PM

Vince, Armand have the little education they have left and come to Mexico to solve the problems they left behind, the growers of Puebla we are waiting. Growers in Mexico be careful since they are buying Cimino Brothers Produce name through a third party called Ricardo Ochoa

UNeed2Know    
USA  |  November, 06, 2011 at 03:33 AM

V.Cimino chpt 7

green.growers    
mexico  |  November, 10, 2011 at 08:16 PM

Srs.Cimino come to Mexico and solve problems left with little economic solvency and imaginative that it was all a dream, come and pay the farmers, suppliers and employees as well as his situation with the SAT, otherwise it may be extradiatdos from one moment to another by Mexican law

Designer    
Greenfield, California  |  March, 20, 2012 at 12:41 AM

I designed that logo you see there. Vince had me make a window he saw in Mexico. He hired other designers before me, but they left him because Cimino wouldn't pay on time. I did the job, but boy did it take a LONG time to get paid. Luckily that was back in 2008, before the Chapter 7 mayhem.

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