Although Lakeside Produce Inc. BB #:158819 creditors filed claims with Blue Book, shortly after the filing, they were quickly closed, giving way to the bankruptcy proceedings.
At the time of this article, two formal Perishable Agricultural Commodities Act (PACA) complaints remain active, reflecting total balances owed of $747,783.
Additionally, a lawsuit remains open against Lakeside Produce and its owner, with three U.S. produce companies filing the suit for $1.3 million for failure to pay for product sold by U.S. sellers, under PACA trust rights.
Final Thoughts
We receive a handful of calls on score behavior every month, from companies seeking information to individuals who simply want to know how they can improve their company’s score.
The score in the case of Lakeside Produce was “spot on.”
Despite reported operational problems that developed during the pandemic, in the beginning, the company was still able to manage its finances, whether through cash reserves or capital contributions for a period of time.
This was seen throughout 2021, then the score started its decent. A year after falling below 700, the company was bankrupt with outstanding produce and logistics obligations.
What will business bankruptcies look like through 2024?
Similar economic pressures to those presented in this case study still exist, and meaningful signs of improvement have yet to surface—so be sure to know your customers and manage risk wisely.
Ratings and scores are critical risk management tools for sellers and service providers, and all should contribute their trade experiences when requested or share monthly A/R aging data files with Blue Book Services.
Contact a rating analyst to learn more about the benefits of sharing this financial data. rating@bluebookservices.com
This is the third of a three-part excerpt from the Credit and Finance department in the January/February 2024 issue of Produce Blueprints Magazine. Click here to read the whole issue.
