Below is an article from the Packer regarding a PACA surety bond. What’s interesting about this article is that it references a local company, associated wholesale grocers. It’s only a few miles from our office and I personally know a bunch of the people working there. It appears that one of their affiliates, DGS Acquisitions posted a PACA surety bond so that they could operate in the produce industry.
The bond was required because DGS had purchased a bankrupt company and one of the people involved with DGS was a part of that bankruptcy, which necessitated the need for the surety bond.
Good luck, guys.
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Kansas company posts PACA surety bond
DGS Acquisitions LLC, Kansas City, Kan., has posted a $200,000 surety bond with the U.S. Department of Agriculture, according to a USDA news release.
The company, an affiliate of Kansas City, Kan.-based Associate Wholesale Grocers, posted the bond to obtain a license to operate in the produce industry.
Under Perishable Agricultural Commodities Act regulations, the company was required to post a bond because one of its principals had been involved in bankruptcy, according to the release.
DGS Acquisitions acquired the assets of seven locations of bankrupt Dahl’s Foods in Greater Des Moines in March, according to a story from the Des Moines-based Business Record.
USDA will hold the bond for three years, providing assurance to the industry that the company will pay for produce purchased and conduct its business according to PACA rules.