Payroll checks caught up in the company’s bankruptcy hearings will finally be released early next week to former employees of the company.
Coronet CEO Ernie Pascua said even more help could be on the way. Currently, the company is in talks with a nationally known company regarding a buyout. Pascua also said Coronet filed a motion to release the employees’ 401k money last week. There is no word on any progress regarding this motion.
On Oct. 29, Coronet Foods Inc. filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Northern District of West Virginia. The filing came just a week after the company closed its Fulton processing plant.
At the time of the closure, company officials cited a sudden reduction in volume, which Coronet reportedly experienced following a salmonella incident in July 2004 involving Sheetz convenience stores. The company and its products were cleared of responsibility by the FDA; however, company officials said adverse publicity surrounding the incident resulted in a loss of sales, making it impossible for the company to continue to operate.