Struggling potato chip-maker Jays Foods Inc. has told more than 500 of its Chicago-area workers that if a crucial deal to sell the firm collapses, they could be out of work and the firm's South Side factory could close as early as mid-December.
Facing an "acute liquidity crisis," Jays filed for Chapter 11 bankruptcy protection Oct. 11 while also striking a tentative deal to sell its assets for $24.8 million to another snack food-maker, Pennsylvania-based Snyder's of Hanover.
The deal is expected to be wrapped up by mid-December, though another bidder might also emerge for Chicago-based Jay's at a bankruptcy court auction set for late November.
Any deal would provide the financing needed to keep Jays' factory humming. But Jays, which has a total of 681 workers, made clear the consequences of a financing shortfall in a filing with the Illinois Department of Commerce and Economic Opportunity.
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__________________ Those who forget the pasta are condemned to reheat it.
My favorite thing to make for dinner is reservations.
They were the potato chip when we were growing up. That is until Charles Chips started being delivered. Yes, they would deliver potato chips to your house in large tins.
In the 50's they delivered everything to your house. We had the drug store, which would deliver your prescription and Coca Cola (it was used for medicinal purposes back then), the local grocery store would deliver groceries, we had a bleachman, Omar bread, milkman, eggman, and the scissor grinder would push his cart down the street to sharpen your scissors and knives. Imagine running out your front door now with knives! Someone would call the police.
PS They were all men doing these deliveries. Woman pretty much stayed home and were like June Cleaver. Times sure have changed!
By Mike Hughlett
Tribune staff reporter
2:47 PM CST, December 4, 2007
A U.S. Bankruptcy Court Judge Wednesday approved the $24.8 million sale of Jays Foods Inc. to a Pennsylvania snack food maker, rejecting a Chicago businessman's last-minute effort to assemble rival bid that would keep Jays South side plant open.
The plant, which has produced the iconic Chicago potato chip for decades, is slated to close Wednesday. Jays' buyer, Snyder's of Hanover, will retain Jays brands, but doesn't intend to use the South side chip factory.
Lawyers for Wallace Sims Jr., a retired banker, urged Judge Pamela Hollis to extend the bidding deadline for Jays, which came and went late last week. Michelle Harris, an alderwoman whose district includes Jays, was in court supporting Sims effort, pledging over $4 million in city tax subsidies to help Jays if Sims became the new owner.
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