Great Pacific Seafoods files for bankruptcy

With its three Alaska processing plants closed, Great Pacific Seafoods filed for Chapter 7 bankruptcy on Sunday.

The Seattle-based company’s assets will be liquidated and sold after a Chapter 7 trustee is appointed by the Western Washington federal bankruptcy court. As of Sunday, the company has ceased all operations, according to a news release issued Sunday.

Daniel DeMatteis, Great Pacific Seafoods’ president, said in a statement the company’s secured lender did not renew the line of credit it extended to Great Pacific Seafoods for this year. Without the line of credit available, Great Pacific Seafoods could not get the working capital to start the season, he said.

“This was a very difficult decision, but we believe we have no other choice given the financial performance we experienced last year,” DeMatteis said in the statement.

Gross revenue fell between 2014 and 2015 from approximately $26.5 million to $21.2 million, according to the bankruptcy filing. In the first nearly six months of 2016, the company only brought in approximately $2.6 million in gross revenue.

The Russian embargo on North American seafood products and the combination of the Japanese yen’s valuation and Japanese demand pushed down the price of roe, which “was a serious blow to our ability to generate sufficient cash to continue to operate,” DeMatteis said in the statement. The increase in the minimum wage and cuts to the J-1 visa program, which provided temporary visas to foreign workers and students, also played into the bankruptcy, according to the statement.

The company listed more than 700 creditors, ranging from claims in the millions in secured property to less than $100 in phone bills.

Great Pacific Seafoods operated plants in Kenai, Whittier and Anchorage and a dock in Kasilof, typically employing approximately 300 people at the peak of the fishing season. Until last year, the company also ran a buying operation in Kotzebue, but chose not to return for the 2015 season. Great Pacific’s plant was the only processing plant in Whittier and saw more than 100 million pounds of fish cross its dock in 2014, according to an industry report from the Alaska Salmon Alliance.

The company has the greatest financial interest in the Kenai processing plant at approximately $3.2 million, according to the bankruptcy filing. The Anchorage plant and the Whittier plant are worth approximately $2.7 million each to the company, and the Kasilof dock is worth approximately $800,000.

The company also owned three condominiums in the Begich Tower in Whittier. All its property holdings together are worth an estimated $9.49 million, according to the bankruptcy filing. The company also listed approximately $2.9 million in personal property, including skiffs and buoys, trucks and vans packing material and frozen fish.

Reach Elizabeth Earl at elizabeth.earl@peninsulaclarion.com.

More in News

Girl Scout Troop 210, which includes Caitlyn Eskelin, Emma Hindman, Kadie Newkirk and Lyberty Stockman, present their “Bucket Trees” to a panel of judges in the 34th Annual Caring for the Kenai Competition at Kenai Central High School in Kenai, Alaska, on Thursday, April 18, 2024. (Jake Dye/Peninsula Clarion)
Bucket trees take top award at 34th Caring for the Kenai

A solution to help campers safely and successfully extinguish their fires won… Continue reading

Children work together to land a rainbow trout at the Kenai Peninsula Sport, Rec & Trade Show on Saturday, May 6, 2023, at the Soldotna Regional Sports Complex in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Sport show returns next weekend

The 37th Annual Kenai Peninsula Sport, Rec & Trade Show will be… Continue reading

Alaska Press Club awards won by Ashlyn O’Hara, Jeff Helminiak and Jake Dye are splayed on a desk in the Peninsula Clarion’s newsroom in Kenai, Alaska, on Monday, April 22, 2024. (Jake Dye/Peninsula Clarion)
Clarion writers win 9 awards at Alaska Press Club conference

The Clarion swept the club’s best arts and culture criticism category for the 2nd year in a row

Exit Glacier, as seen in August 2015 from the Harding Icefield Trail in Kenai Fjords National Park just outside of Seward, Alaska. (Photo by Jeff Helminiak/Peninsula Clarion)
6 rescued after being stranded in Harding Ice Field

A group of six adult skiers were rescued after spending a full… Continue reading

City of Kenai Mayor Brian Gabriel and City Manager Terry Eubank present “State of the City” at the Kenai Chamber of Commerce and Visitor’s Center in Kenai, Alaska, on Wednesday, April 17, 2024. (Jake Dye/Peninsula Clarion)
Mayor, city manager share vision at Kenai’s ‘State of the City’

At the Sixth Annual State of the City, delivered by City of… Continue reading

LaDawn Druce asks Sen. Jesse Bjorkman a question during a town hall event on Saturday, Feb. 25, 2023, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
District unions call for ‘walk-in’ school funding protest

The unions have issued invitations to city councils, the borough assembly, the Board of Education and others

tease
House District 6 race gets 3rd candidate

Alana Greear filed a letter of intent to run on April 5

Kenai City Hall is seen on Feb. 20, 2020, in Kenai, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)
Kenai water treatment plant project moves forward

The city will contract with Anchorage-based HDL Engineering Consultants for design and engineering of a new water treatment plant pumphouse

Students of Soldotna High School stage a walkout in protest of the veto of Senate Bill 140 in front of their school in Soldotna, Alaska, on Wednesday, April 17, 2024. (Jake Dye/Peninsula Clarion)
SoHi students walk out for school funding

The protest was in response to the veto of an education bill that would have increased school funding

Most Read