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Md. Sen.: Allen Foods Bankruptcy Devastating

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CORDOVA, Md. (AP) — A Maryland state senator says the bankruptcy filing of Delaware’s Allen Family Foods is devastating news for his Eastern Shore district.

Sen. Rich Colburn says the poultry company, which filed for bankruptcy last week, is Talbot County’s second-largest employer behind Memorial Hospital in Easton. State officials say between 500 and 600 employees work at its Cordova plant, not including farmers at Allen-contracted chicken houses.

Colburn said Wednesday that he has contacted state officials for help. The company’s 2,400 employees, meanwhile, are waiting to see what will happen to their jobs.

The Seaford, Del., company says it plans to sell nearly all of its assets to a new affiliate of Mountaire Farms, which may add an undetermined number of jobs. The company has facilities in Delaware, Maryland and North Carolina.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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