USDA files complaints against two related Florida companies

The U.S. Department of Agriculture has filed administrative complaints under the Perishable Agricultural Commodities Act against C&D Produce Outlet Inc. and C&D Produce Outlet South Inc.

C&D Produce Outlet Inc., Palm Beach Gardens, Fla., allegedly failed to make payment to seven produce sellers in the amount of $104,595 from May 2015 through October 2016, according to a news release.

C&D Produce Outlet South Inc., Palm Springs, Fla., allegedly failed to make payment to six produce sellers in the amount of $123,113 from July 2015 through October 2016, according to the USDA.

A PacerMonitor record indicates C&D Produce Outlet and C&D Produce Outlet South, Palm Springs, Fla., filed for Chapter 11 bankruptcy in April 2016, though each case was eventually dismissed and terminated by the presiding judge.

A June 2016 case against C&D Produce Outlet and C&D Produce Outlet South lists Fresko Foods LLC as a plaintiff seeking recovery of money, with Freedom Fresh LLC and Freshpoint South Florida Inc. named in counterclaims by C&D Produce Outlet, according to PacerMonitor. This case was dismissed in late July because the related bankruptcy cases were dismissed.

C&D Produce Outlet Inc. and C&D Produce Outlet South Inc. have the opportunity to request a hearing with the USDA. Under PACA rules, if USDA finds the companies to have flagrantly and repeatedly violated PACA, it would be barred from the produce industry for two years, and its principals barred from employment for a year.