CHARLOTTE, NC - Chiquita Brands has announced its Q1 2015 financial results, citing a 5 percent drop in sales. The company has also said it will lay off 300 workers in Latin America, according to The Charlotte Observer.
As we’ve previously reported, Chiquita agreed to a $682 million merger agreement with Cutrale/Safra near the end of 2014. Now, losses more than doubled for the company in the first quarter to $64.6 million, compared with $24.6 million during the same quarter last year.
The Charlotte Observer reports that the company paid out up to $5 million in severance payments to the workers that were laid off in Latin America, and incurred $48 million in legal and advisory fees in connection with a proposed merger with Irish produce company Fyffes.
Another factor that could be affecting Chiquita’s Q1 losses is the relocation of Chiquita’s headquarters from Charlotte. As we previously reported, Chiquita was promised about $22 million worth of state and local incentives to locate its headquarters in Charlotte in 2011 on the condition that the company would stay there for at least 10 years. Now there are reports that this could cost the company up to $40 million.
Stay tuned as AndNowUKnow continues its coverage on the latest industry financial news.
