One of Exeter's largest businesses is in financial trouble.
Last month, Svenhard's Swedish Bakery filed for Chapter 11 bankruptcy citing nearly 200 creditors — including the city of Exeter.
The top 20 creditors have a combined debt of more than $16 million. Bank of America sits at the top of the list with $5 million owed.
The company claimed between $1 and $10 million in assets, according to court documents, and between $10 and $50 million in liabilities.
One of the creditors — Dawn Food Production — filed a civil suit against the bakery in November for unpaid debts of roughly $850,000.
The Northern California General Teamsters Security Fund has also filed suit against Svenhard's over money they say is owed to them.
Rising pension costs could also be a factor in the bankruptcy. At least one retired employee has an open civil case against the bakery for allegedly paying out less than what was promised.
The bakery currently employs roughly 190 people and appears to still be operational in the new year. Company officials did not return the Visalia Times-Delta's request for comment.
Harassment lawsuits
The company also faces a civil suit filed in December 2017 by an employee.
Lorena Vasquez alleges in a lawsuit a foreman and a supervisor sexually harassed her during work hours.
Almost immediately after Vasquez starting work at Svenhard’s in 2016, she said her then-supervisor, Israel Sanchez, made "sexually offensive" comments to her.
The comments included "these jeans make your (expletive) look so great," and he insinuated that he wanted her to bend over, according to court documents.
She reported the comments, but no action was taken, she said.
Vasquez was reassigned to a different shift.
Immediately after she was moved, she said her new supervisor, Marcelino Chaires, made inappropriate comments toward her.
The comments, according to court records, included telling her he wanted "to bite and kiss her behind and have sex with her, asking her when she was going to sleep with him because he had already planned everything he was going to do to her, telling her that her breasts looked nice and that he wanted to suck on her breasts."
Again, Vasquez reported the comments to Svenhard's human resource department.
Chaires was later suspended for two weeks.
"(Vasquez) still sees Chaires in the workplace and is not aware of any re-training having taken place," the complaint stated.
Filing bankruptcy
The company's board of directors unanimously voted to file for bankruptcy, saying the decision was in the "best interest of the company, its creditors, and other interested parties" in a Dec. 13 petition to file.
Six days later, Svenhard's submitted its paperwork to the court. Svenhard's COO, David Kunkel, was given the authorization to sign the petition.
The company hired the Los Angeles-based Law Office of Zolkin Talerico as its bankruptcy counsel.
The business has shown signs of financial hardship throughout the years.
In 2014, Svenhard's laid off its production staff after announcing that the company was relocating from Oakland to Exeter.
Svenhard hoped to eventually close its Oakland plant by 2016 in hopes of growing its staff in Exeter to more than 150 employees. The original plan was to take the $8 million in proceeds from the sale to relocate all production to Exeter, where the company started.
Svenhards products can be found in many locations including local supermarkets, Costco and big-box retailers.
A meeting of creditors is scheduled for 3 p.m. on Jan. 24 in Fresno.
Sheyanne Romero covers Tulare County public safety, local government and business for the Visalia Times-Delta and Tulare Advance-Register newspapers. Follow her on Twitter @sheyanne_VTD. Get alerts and keep up on all things Tulare County for as little as $1 a month. Subscribe today.
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Exeter's Svenhard's Swedish Bakery files for bankruptcy - Visalia Times-Delta
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