Prima Wawona, a stone fruit producer in Fresno, Calif., announced in October it filed for bankruptcy with more than $600 million in debt. Since then, the company said it would liquidate its assets through after an unsuccessful attempt to sell through auction.
Now, The Fresno Bee reports the company will lay off 5,411 workers ahead of the sale of more than 16,000 acres of farmland valued at $370 million. The Bee reports the layoff impacts 3,743 seasonal employees.
The Bee said interest is high in the land as Fresno Irrigation District, Alta Irrigation District and Consolidated Irrigation District service some of the parcels.
Prima Wawona became the largest stone fruit grower in the country following the acquisition of Gerawan Farming in 2019. It also added the stone fruit breeding assets of Burchell Nursery in 2018.
Paine Schwartz Partners invested in the companies following the merger. The Bee said industry insiders estimated the value of the Prima Wawona at $1 billion at the time of the merger.
The Bee said the company indicated mismanagement, a lack of understanding of the tree fruit industry and ineffective high-priced consultants as part of the reasons for its collapse.
“The liquidation of Prima Wawona is a sad day for the generations of men and women who worked tirelessly to build and tend to these orchards over the last half-century,” Dan Gerawan, former CEO, told The Bee.
Editor’s note: Wawona Frozen Foods issued the following statement related to the Prima Wawona matter.
“The San Joaquin Valley-based, family-owned and operated Wawona Frozen Foods is not affiliated in any way with the fresh fruit company, Prima Wawona. Wawona Frozen Foods is a third-generation company which just celebrated its 60th year in business and is among the largest frozen fruit companies in the nation.”
