Southwest Virginia Population decline 2010-2018.

Prime Choice Foods Files for Bankruptcy in Bristol

In another blow to Bristol snack food maker Prime Choice Foods, once touted a "rural success story", has filed Chapter 11. The company makes mainly organic corn chip products under various labels.

This is another "born again" company that moved into a closed operation. Taking over the Terry's Potato Chip plant in Bristol Virginia. To quote public records,

In October 2006, Mount Rogers Planning District Commission in Southwest Virginia approved a $150,000 ultimate recipient loan to Prime Choice Foods from its Intermediary Relending Program revolving loan fund provided by Rural Development.

This $150,000 investment leveraged $1,850,000 in other funds obtained from the Virginia Governor's Opportunity Fund, Virginia Tobacco Indemnity Fund, City of Bristol, and First Bristol Bank.

The purpose of the loan was to acquire an existing commercial warehouse for storage and distribution of snack foods and to provide corporate office space for a growing company.

In other words resurrected with tax dollars the same old jobs. They are working with Heritage Equity Partner of Maryland to sell the firm or get capital, but the press report is strange:

"The company is in need of working capital to support growth and we are exploring many possible scenarios to solve this problem, including new money, either debt or equity, a joint-venture partner, or a going concern buyer."

If the company is doing so great and just needs capital for expansion why not go to a bank? I smell a corporate welfare check and the proclamation of 100 new jobs. They only employ about 35 but what's a few orders of magnitude when it comes to crony capitalism and big press releases?

Ref. BHC July 2, 2014.

History of Local Poverty

Ralph Stanley Museum.

"The most corrupt region is Southwest Virginia...more indictments for political and public office corruption have happened in this region than all other parts of the state combined." Larry Sabato, director of the University of Virginia's Center for Governmental Studies.

"It's a little-known fact that roughly 20 percent of the children in Southwest Virginia live below the poverty line and go hungry every night." Kevin Crutchfield, President Alpha Natural Resources, January 15, 2009

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