Fishing boats and a fish processing facility in Pacific County, Washington, can be seen in this file photo. 

ILWACO — Jessie’s Ilwaco Fish Co. has gone into receivership, leaving employees unsure of what the future holds.

With up to 65 employees depending on the time of year, Jessie’s is one of the largest employers in Pacific County, according to the Washington State Employment Security Department. The workforce is fully paid up, according to the receivership filing.

Receivership is similar to bankruptcy, but is handled under state law. The process is often used when a company is unable to meet its financial obligations. In Washington, receivership means the court takes over management of a business, and then a receiver is appointed as an officer of the court.

Receiver Christopher Wain was appointed on Feb. 26 by Pacific County Superior Court Judge Donald Richter, according to court documents. Jessie’s is owned by Alber Seafoods Inc., a California company that also filed for receivership on the same day. Jessie’s management did not wish to comment at this time.

Wain specializes in keeping companies running during a receivership, he said when reached Feb. 27.

The finances

Jessie’s owes about $10.5 million in secured and unsecured debts and has assets with a book value of $7.1 million, according to the receivership petition, though the book value of the company’s assets may be higher than the realizable value, Wain said. But he was not able to speak directly about Jessie’s case as it is still in the early stages.

The firm’s largest listed asset is fisheries quota with a stated value of $2,356,000 and associated permits valued at about $100,000. Jessie’s main plant is on property leased from the Port of Ilwaco and the state of Washington, but the firm claims $355,000 in improvements to the facilities. It owns outright two other small nearby properties assessed at $121,000. It owns equipment with a book value of $2 million and has on-hand inventory of $762,000.

‘Never good to be lied to’

Secured creditors, who are first in line for payment because they hold recorded mortgages and other types of formal liens against collateral, include Craft3 Capital Corp. of Astoria, which is owed $3.7 million; Authentic Canadian Seafoods Inc. of Mount Pearl, British Columbia, owed $3.1 million; GemCap Lending 1 LLC of Malibu, California, owed $1.9 million; plus two smaller liens amounting to about $70,000. Jessie’s customers owe the company $967,000, with an additional $473,000 in notes receivable.

Unsecured creditors don’t have a claim against collateral. They typically split anything left over after the secured lenders are paid.

One of Jessie’s largest unsecured creditors, owed about $559,000, is Independent Packers Corp. in Seattle. The corporation’s owner, Jeff Buske, said Jessie’s stopped paying him about four or five months ago. Buske’s business was supplying Jessie’s with scrap from the packers’ production for Jessie’s to use in making pet food.

“Never good to be lied to,” Buske said. “It was broken promise after broken promise.”

However, Independent Packers is a healthy company and it’ll survive this, Buske said.

The 2½-page list of Jessie’s unsecured creditors included: Pacific County Treasurer owed $92,000; the FV/ Tradition owed $37,183; the FV/ Beachcomer owed $31,180; the FV/ Miss Pacific owed $18,996; the city of Ilwaco owed $17,300; the FV/ Dream owed $12,899; the Port of Willapa Harbor owed $7,938; Washington Department of Labor and Industries $27,300, and the Port of Ilwaco owed $6,968, according to the receivership petition.

Alber Seafoods purchased Jessie’s from the Marchand family. Among the unsecured creditors is the A. Pierre Marchand Jr. Living Trust, which is owed $105,000. Pierre was the son of company matriarch Jessie Marchand. Another Marchand family member, Doug Ross, is owed $160,000 through his company PDP, LLC.