(Oct. 26) ATS LLC, Nogales, Ariz., has closed its doors, with a Perishable Agricultural Commodities Act case pending against it.

ATS – formerly Arkansas Tomato Shippers — reported to Red Book Credit Services Oct. 24 that it is out of business and that sales manager Brooks Lisenby plans to operate a new company, JBL Produce LLC.

Lisenby, who could not be reached for comment Oct. 26, told The Packer last year that the company handled 2.7 million packages a year from Mexico and grew, packed and shipped 750,000 cartons from Arkansas annually.

The Fruit and Vegetable Dispute Resolution Corp., Ottawa, said Oct. 25 that it had terminated the membership of ATS for “suspending operations without fulfilling its financial obligations.”

According to court documents, ATS and its executives face two lawsuits in U.S. District Courts.

Lange Trading Co. Inc., Springfield, Ill., and Eclipse Berry Farms LLC, Oxnard, Calif., allege in a lawsuit filed Oct. 22 in the U.S. District Court for the Eastern District of Arkansas that ATS owes the plaintiffs $192,022.

ATS also faces a class-action civil lawsuit filed June 1 on behalf of Mexican migrant workers in the U.S. District Court for the Western District of Arkansas. According to court documents, ATS employed more than 2,500 Mexican workers under provisions of the H-2A guest agricultural worker program from 2002-07. The lawsuit alleges that the company did not reimburse workers for travel and visa expenses, in violation of the Fair Labor Standards Act.

The lawsuit also alleges that the company did not pay workers minimum wage and did not pay them for overtime work.

Attorneys for ATS and the plaintiffs could not be reached for comment.