Va. trucker refuses to deliver potatoes until payoff obtained

BELFAST – The owner of a Virginia trucking company says a recently sold Belfast potato processor owes her more than $34,000. So she is holding three truckloads of frozen spuds hostage.

Diane Tranks, who operates Seven Hills Express Inc. of Forest, Va., said she has been unable to get payment from the new owner of the assets of Penobscot Frozen Foods.

The company operated in Belfast for more than 50 years, but its assets were sold at a bank foreclosure auction last month for about $1.8 million.

The new owners, who also own County Super Spuds of Mars Hill, a supplier of Penobscot Frozen Foods, say the debt to Tranks did not come with their purchase.

Gordon Pow, assistant to the new owners, said Monday the new owners bought Penobscot’s assets, not the business. Those assets include a processing plant on Belfast’s waterfront, an industrial storage building near the waterfront, a sorting, grading and storage facility in Washburn and the company’s customer base.

“The bank foreclosed on the assets,” Pow said, and those were purchased at the auction.

Penobscot Frozen Foods “exists only on paper” at this point. It is expected to file for Chapter 7 federal bankruptcy, which is implicated when a company has no assets and substantial debts.

Many other creditors are in the same position that Seven Hills is in, Pow said, and he has talked to hundreds.

“This is not an uncommon event,” he said. “It’s unfortunate – [Penobscot] hit some tough times.”

Tranks said her company is owed $34,187. So she is holding hostage three truckloads of frozen processed potatoes, valued at $120,000 to $150,000.

The new owner is called Penobscot McCrum LLC, but does business as Penobscot Frozen Foods.

“The old company owes her,” Pow said. “I can’t pay her money the old company owes her.”

Tranks said Friday in a telephone interview that her research has revealed that the Penobscot McCrum name was registered with Maine’s Secretary of State’s office in October, well before the foreclosure.

The new owners acknowledged reserving the name in October. “We were the major creditor,” Pow said. “We saw it coming. We anticipated the auction.”

He noted that the bank auction was advertised three times in the Bangor Daily News.

Pow confirmed that Tranks is owed $34,187.

On May 7, a check from Penobscot Frozen Foods to Seven Hills Express bounced because of insufficient funds, Tranks said. The company’s checking account was then closed.

On May 10, three trucks were loaded in Belfast with frozen potato products – which are sold at convenience stores – to be delivered to stores in Virginia and Kentucky, both parties agree.

Tranks said she refuses to deliver the product until she is paid the $34,187 that she is owed. The potato product is being kept frozen, she said, and is out of state.

Penobscot McCrum filed suit against Seven Hills Express and Tranks on Friday, seeking damages for the missing product. The company also claims that Tranks on Thursday sent “a misleading and defamatory letter” to Penobscot customers.

“We’ve advised her to seek legal counsel on several occasions,” Pow said, “and she refuses to do so.” Tranks should seek compensation from Penobscot Frozen Foods, he said.

Penobscot’s former principal owners, brothers Bruce and Rick Starrett, have been retained at the new company.

“We’re dealing with a person on the edge,” Pow said of Tranks. “She’s made no effort to work this out or listen to reason.”

Tranks counters that she will deliver the product when she is paid.

“We were told we were going to be paid,” she said. “We’re not going to deliver this freight until we do get paid.”