In response to petitions filed by creditors, Future Beef Operations (FBO) has sought bankruptcy protection under Chapter 11 of the Federal Bankruptcy Code. On Thursday, March 7, approval of an interim order establishing debtor in possession financing to allow the company to continue uninterrupted operations during a reorganization period was granted in federal court in Denver, Colo. A comprehensive workout plan will be developed over the next six months.
Operations of FBO’s newly constructed Arkansas City, Kan., products center have and will continue uninterrupted during the reorganization including production of blue-chromed hides, case-ready ground beef, cooked deli products and pet treats, in addition to a full line of boxed beef. All business units of the products center are now operational and the individual animal data system is online allowing direct reporting of data back to contracted commercial cow-calf and seedstock suppliers.
Feeder cattle in the Future Beef supply chain will continue to be fed in cooperating feedlots and growyards, including both FBO purchased and retained ownership cattle. Future Beef is working closely with its partners in the feeding industry to ensure that cattle will continue to efficiently move to the products center. Moving forward, efforts will continue to be concentrated on developing long-term relationships with progressive producers and operating all areas of the products center at optimum capacity. The full development of a gene to retail supply chain is continuing as the focus of the company’s cattle operations.
“FBO intends to implement its original ranch-to-retail business plan. We are absolutely committed to the business model, and with a leaner, restructured entity, we are confident that the original vision will be achieved,” concluded Thad York, Future Beef’s acting CEO.
The new management team moving forward includes six vice presidents working with York: Randal Garrett (Product Center Operations), Ronnie Green (Cattle Operations), John Francis (Marketing and Sales), Rob Streight (Quality Assurance Programs), John Pougnet (Financial Operations) and Darrell Wilkes (Investor Relations).