Saturday, November 22, 2008

Economic Downturn Sinks Poseidon Seafood

Poseidon Seafood confirmed Friday afternoon that it is closing, a move that will add nearly 200 people to the unemployment rolls in the Carolinas.

In a statement, the company blamed the economic downturn and said it was winding down operations as soon as possible. A recorded message at Poseidon's office said today was its last delivery day.

Poseidon is one of the biggest seafood distributors in the Southeast, according to the company Web site, with processing facilities in Charlotte, Raleigh, Charleston, Atlanta and Richmond, Va., as well as a regional distribution center in Bristol, Tenn.

“Everybody's in shock because no one saw this coming,” said Bryan Diliberto, an equipment vendor of Poseidon's in Lake Norman, North Carolina.

In 2006, Hunt Private Equity Group in Dallas and Fenwick Capital in Alabama bought the company, which it called one of the largest privately held seafood distributors in the United States.

Last year, Hunt announced it bought out the independent Poseidon Charleston, S.C., distributor, as part of aggressive growth plans for Poseidon. And in July, officials told reporters that Poseidon planned to use $8 million in new financing to expand operations.

Something seems fishy if you ask Cedar Posts.

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