A 6-Generation Cherry and Apple Giant Just Filed for Chapter 11 Bankruptcy. Growers Say It’s Not an Isolated Case

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The producer’s likely buyer is backed by Washington public employees’ retirement money, highlighting how outside capital is reshaping the state’s struggling apple industry.

A 6-Generation Cherry and Apple Giant Just Filed for Chapter 11 Bankruptcy. Growers Say It's Not an Isolated Case

Gebbers Farms was once one of Washington’s largest apple and cherry operations. This summer, it filed for bankruptcy.

The Brewster-based grower’s lead affiliate, Brewster Heights Orchard & Packing, filed for Chapter 11 on June 4 after its major lenders declared the company in default and refused to advance more money unless the family sold, according to court documents.

Gebbers’ CFO Brooke McGuire told Spokesman that when

Gebbers’ CFO Brooke McGuire told Spokesman that when the initial sale efforts failed, the company had “no practical alternative” but to seek bankruptcy protection.

Last week, lawyers said the auction drew no competing offers. That left International Farming Corp. (IFC), a North Carolina-based investment firm, as the shoo-in buyer through its affiliate Heritage Orchards Alliance, which had entered a $231.5 million stalking-horse bid.

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IFC entered the apple business only eight years ago. In 2018, it launched a wave of acquisitions. The firm is bankrolled in large part by the Washington State Investment Board, which manages public employees’ retirement money and has agreed to place more than $537 million with it. It is unclear whether the board was told of IFC’s roll-up strategy.

Gebbers’ history

Gebbers was formidable

Gebbers was formidable. Built over six generations in Okanogan County, it calls itself the largest cherry grower in the world. As of this summer, it managed 6,800 acres of apple trees, more than 1,500 acres of cherry orchards, and 10 packing houses. As of June 4, it employed 3,742 people It owed more than $225 million to its major lenders

“We are one step closer to completing the transaction,” Steve Clement, CEO of Heritage Orchards Alliance, told Spokesman. “Together, we will have enhanced scale.”

Source: www.inc.com