According to the UK Financial Times: The biggest US chicken producer filed for bankruptcy protection on Monday, dragged down by unmanageable debts, weak demand, oversupply and high feed costs.
Although the announcement from Pilgrim’s Pride had been widely expected, it underlines how the economic downturn is hitting food producers, as consumers shy away from expensive chicken breast and opt for cheaper alternatives.
Pilgrim’s Pride became the top company in the industry after its $1.1bn takeover of Gold Kist in 2006.That deal saddled the company with a large debt burden: its total debts stand at $2.72bn, while its net assets amount to $3.75bn according to the Chapter 11 petition. Last week, Pilgrim’s Pride secured a third temporary extension from creditors, but that ran out on Monday and the company was apparently unable to persuade them to extend it again.
The company – based in a small town in north-east Texas called Pittsburgh – employs 48,000 people and operates 35 chicken-processing plants and 11 prepared-foods facilities.
It is focused on institutional sales, with about two-thirds of production going to caterers and restaurants and about one-quarter to the retail market. 
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