N.C. Food Processor Files for Bankruptcy

James Foods on Monday filed for Chapter 11 bankruptcy protection to restructure debt amid negotiations over ownership of the facility in which it operates.

The Graham, N.C.-based maker of chicken potpies has about 150 creditors, the top 20 of which have nearly $9 million in unsecured claims, according to court documents. Company officials said they racked up debt through a factoring agreement and various lenders while trying to ramp-up production. They also noted cash flow issues caused them to fall behind in payments to the IRS.

The court has scheduled a hearing for Friday on a motion from James to pay its 27 employees as scheduled on that day.