The Associated Press
LITTLE ROCK, Ark. (AP) - The bankruptcy of Little Rock-based Affiliated Foods Southwest Inc. has wiped out about $34 million in investments held by more than 600 employees or members of the cooperative.
The investors are from Arkansas, Alabama, Georgia, Illinois, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Tennessee and Texas.
The investments known as certificates of indebtedness are part of the unsecured debt held by Affiliated. Unsecured debts would be among the last paid as the company is liquidated.
The amounts range from $8 to more than $2.2 million held by Shirley Davis - the widow of former Chief Executive Officer Jerry Davis who died in 2004. Filings in bankruptcy court show more than 60 investors lost at least $100,000.
Affiliated Foods was a wholesale cooperative owned by member grocery stores. It supplied hundreds of grocery stores in Arkansas, Texas, Louisiana, Mississippi, Oklahoma and Tennessee.