Agribusiness giant, J. R. Simplot, is looking for receivership over two of its suppliers, accusing them of the mismanagement of $400 million.
Simplot sued the Washington Potato Company, the Oregon Potato Company and their principal Frank Tiegs in the Western District of Washington, claiming breach of fiduciary duty and unjust enrichment. Simplot is a non-controlling owner of both businesses.
“WPC, OPC, and Tiegs, through gross negligence, recklessness, and intentional misconduct, including self-dealing, have mismanaged Pasco and Gem State to the point where these companies are failing financially and otherwise. Tiegs has stated on more than one occasion, and as recently as late November 2016, that NFF will be out of money and bankrupt within a year,” Simplot states.
“In addition, defendants have caused significant supply chain disruptions, poor employee morale, poor employee retention, and the enhanced concern for serious quality, worker safety, and food safety issues. Simplot is only recently learning the magnitude of the defendants’ safety and quality issues, both in the context of the defendants’ management of Pasco and Gem State, as well as in the defendants’ other ventures,” the complaint adds.
National Frozen Foods, controlled by Tiegs and the Washington Potato Company, recently overdrew by $3 million and may not be able to meet payout come payday, putting more than 2,000 jobs in Washington, Idaho, and Oregon at risk, according comments by Simplot.
source: potatopro.com
