LITTLE ROCK, Ark. — Affiliated Foods Southwest here has completely shut down its operations and is seeking to convert its Chapter 11 bankruptcy reorganization into a Chapter 7 liquidation.
In a court filing this week, AFS said it was unable to secure liability and workman’s compensation insurance beyond July 17, and so terminated all remaining employees at that time. The company had already sold off its inventory and had been trying to sell other assets since filing for Chapter 11 bankruptcy in May.
Associated Wholesale Grocers, Kansas City, Kan., had previously acquired product inventory from AFS and has taken over distribution for several former AFS customers. Neither AFS nor its attorneys could be reached for further comment.
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