The U.S. Department of Agriculture has filed an administrative action under the Perishable Agricultural Commodities Act against Organic Avenue LLC.
The New York company allegedly failed to make full payment to four produce sellers in the amount of $249,272 from August 2015 through September 2015, according to a USDA news release.
Under PACA rules, the principals of the bankrupt Organic Avenue LLC may request a hearing, but if USDA rules the company to have violated PACA, the company would be barred from the produce industry for two years. Its principals would be barred from employment with any PACA licensee for a year, after which they would be eligible for employment only with the posting of a USDA-approved surety bond.
Organic Avenue LLC filed for bankruptcy in September 2015 and its assets were purchased out of bankruptcy in late 2015 by Organic Avenue Holdings LLC, which has no relation to the bankrupt company, said Christopher Anci, CEO of Organic Avenue Holdings, in a phone interview.
Organic Avenue Holdings operates under the Organic Avenue brand with six New York locations, Anci said.