Florida-based shrimp farmer American Mariculture (AMI) and shrimp genetics provider American Penaeid have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida. On January 8, Ross Horsley, president of both companies, submitted separate petitions, which were later consolidated into a joint bankruptcy case by the Florida court.
Chapter 11 of the U.S. Bankruptcy Code allows businesses to reorganize while continuing operations, enabling them to pay creditors over time. This process can also apply to individuals or partnerships seeking relief.
AMI, the largest shrimp farmer in the U.S., reported in its bankruptcy petition that it has 50 to 99 creditors. The company’s assets are estimated at $1 million to $10 million, while its liabilities are projected between $10 million and $50 million.
Among AMI’s creditors are major entities like Cargill Financial Services International, Chase Bank, and Florida First Capital Finance Corp. The company’s largest unsecured creditor is co-founder Robin Pearl, owed approximately $1.9 million, according to court documents.
Co-founded in 2013 by Robin Pearl, AMI initially focused on shrimp farming but pivoted to producing broodstock for other shrimp farmers due to early operational challenges. At its peak, the company generated $25 million in annual sales, with a significant portion coming from Chinese markets, making it the world’s largest broodstock producer.
However, AMI’s reliance on international sales made it vulnerable. The COVID-19 pandemic severely impacted the Chinese market, leading to a drastic sales decline. Although sales began recovering post-pandemic, efforts to sell the company were unsuccessful, which the owners attributed to financial struggles exacerbated by multiple hurricanes and business downturns.
The court has granted expedited joint administration of the bankruptcy case. AMI will seek to reorganize its debts and operations to continue as a viable entity, while its creditors and stakeholders await further developments in the proceedings.
Robin Pearl returns
Robin Pearl, who recently resigned as CEO of American Mariculture, American Penaeid and Sun Shrimp in December, has returned to the company.
“I return to lead the companies I co-founded and care for so much. I really view it as catching a second wind to continue forward and accomplish the high goals I have always set for the companies, my teams and myself,” Pearl said.
“While restructuring is never a fun experience, I believe AMI, API and Sun Shrimp will quickly come out much stronger afterward. I realize it will take time to re-earn the trust of our many stakeholders, but I am confident that with my team behind me, we can not only return to our previous levels but hopefully attain entirely new levels of success,” Pearl said. “I am pleased to inform you that our broodstock look fantastic and are ready to travel the world and help farmers everywhere.”
