Jacksonville Fla.-based Winn Dixie Stores Inc. has posted a $1 million surety bond with the U.S. Department of Agriculture, allowing the retailer to have an active Perishable Commodities Act license.
The retailer was required to post the bond, according to a USDA news release, because of an involvement in a bankruptcy.
Businesses and their principals who are sanctioned under PACA rules are barred from operating in the industry with a PACA license for a specific amount of time. If they post surety bonds, and the USDA approves, businesses can obtain a PACA license and people can be employed by/affiliated with a PACA licensee.
The USDA will hold the Winn Dixie bond for three years and nine months, to assure the industry the company will be able to pay for purchased produce, according to the release.