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Coastal Growers LLC officials announced Nov. 27 that they filed for Chapter 11 reorganization in the United States Bankruptcy Court for the Southern District of Alabama, Mobile Division.

Officials said in a release this step is designed to maximize the value of the business.

Founded to provide peanut farmers with more favorable returns by sharing in the profits of peanut farming and shelling, Coastal Growers operates a shelling plant in Atmore. Since opening in 2021, the plant has served as a hub for shelling, storing and shipping peanuts, creating economic opportunities and supporting agriculture in the region.

“Our fundamental purpose has always been to deliver value back to our grower-owners,” said Holly Johnson, chief financial officer of Coastal Growers. “This reorganization is a necessary step to strengthen our financial position and ensure the success of the shelling plant.”

Through the Chapter 11 process, Coastal Growers officials said they intend to sell its business as a going concern, preserving jobs and operations and maximizing the value of the business.

Coastal Growers officials said they’re committed to maintaining the trust and support of its growers, adding the company is committed to its economic role in the Atmore community.

“This was not an easy decision, but it is the right one for the future of Coastal Growers,” Johnson said. “We are optimistic about the outcome and remain steadfast in our commitment to supporting farmers and securing success for generations to come.”