Assets of Zaycon Foods to be sold at auction
Valley-based meat delivery company shut down abruptly in June
Virginia ThomasOctober 25th, 2018
The assets of Zaycon Foods LLC, a former Spokane Valley-based meat delivery company that at one time had a national presence, will be sold at a public auction next week, according to a public notice published by a Spokane law firm.
Zaycon Holdings Inc., a holding company separate from Zaycon Foods, will sell the assets at 1 p.m. on Oct. 31 at the offices of Davidson Backman Medeiros PLLC, in the Bank of America Financial Center, at 601 W. Riverside.
According to the notice, Spokane Valley-based Zaycon Foods—which did business as Zaycon Fresh—defaulted on loan obligations and has granted the separate Zaycon Holdings a security interest in all assets.
Attorney Barry Davidson, of Spokane, who represents Zaycon Holdings, declines to comment. James C. Brand, of Minneapolis-based law firm Fredrickson & Byron PA and is listed on the notice as an attorney for Zaycon Holdings, didn’t respond immediately to a request for comment.
Zaycon Fresh sold meats and seafood preordered by customers, who would pick up their orders from the back of tractor trailers at designated times and places. Within a few years, Zaycon Fresh grew into a multimillion-dollar business.
The company, however, suddenly ceased operations in June, reportedly leaving many of its customers with paid, unfulfilled orders. For more than a year and a half, the company had been embroiled in litigation brought against Zaycon Foods by former CEO and co-managing member Richard Braddock. Braddock had claimed that Zaycon Foods and its co-owners, Mike Conrad, Frank Maresca, Michael Giunta, and Adam Kremin wrongfully terminated him from his CEO position and manipulated the voting processes in order to convince shareholders to fire Braddock.
Braddock also alleged the defendants committed securities fraud by withholding information necessary for Braddock to convert into equity debt owed him by the company.
Braddock sought more than $6.5 million in compensation, in addition to reinstatement of his position within the company.
In a separate case filed in April 2017 through the U.S. District Court in Spokane, attorneys for Fairfield, Ohio-based Cincinnati Insurance Co. claimed the insurance company had no duty to cover or defend Zaycon Foods with respect to Braddock’s claims.
According to documents filed with the 9th U.S. Circuit Court of Appeals, Zaycon Foods is in mediation with Cincinnati Insurance.