Dive Brief:
- River Ranch Fresh Foods, a wholly owed subsidiary of Taylor Farms, announced it will cease operations on Nov. 8. Some 171 people will lose their jobs.
- The company grows, ships and processes salad greens and other vegetables. It operates food-processing facilities in Salinas, Calif., and in Yuma, Ariz.
- River Ranch produces salads for store brands and foodservice companies, but is probably best known for its "Popeye Fresh" brand of spinach.
- In a letter to customers, company executives said they were unable to keep costs under control.
Dive Insight:
We're saddened to see River Ranch disappear. The company can trace its history to some of the early pioneers of the California produce industry. But in hindsight, the collapse of River Ranch appears inevitable. Back in 2005, River Ranch was purchased by a group of private equity investors who promptly loaded the company with debt. Things spiraled downward quickly, and within several years the banks that had been dumb enough to loan money to the private equity fund found themselves the new owners of thousands of acres of lettuce. The banks promptly sold the company to Taylor Farms. But as is often the case in such deals, the years of laboring under private-equity-induced debt had left River Ranch unable to function effectively.