Palama Meat Co., distributor sold for $14M

By Andrew Gomes
Advertiser Staff Writer

A corporate turnaround firm headed by a former Hawai'i resident has purchased the state's largest meat-processing business, Palama Meat Co., and its affiliated food distributor out of bankruptcy.

A judge last month approved the $14 million sale of Palama Meat and H&W Distributors to a firm headed by former Hawai'i resident William Loose and his California-based investment company 180 Capital, which focuses on acquiring and restructuring distressed businesses.

Through Palama Holdings LLC, 180 Capital recently completed the transaction and assumed operations of Palama Meat Co. and H&W Distributors (formerly H&W Foods).

The two companies filed for Chapter 11 in April 2003, citing financial trouble caused by an expensive expansion that was followed by disappointing sales after the Sept. 11 attacks and last year's start of the Iraq war.

Under bankruptcy, the businesses — which supply more than 1,000 accounts, including supermarkets, restaurants, wholesalers, military commissaries and the state Department of Education — maintained operations that Loose said he now expects to grow. The roughly 150 employees of both companies were retained by Loose.

Palama Meat was established in 1952, and owns brands such as May's and Hawaiian Warrior. The company processes numerous items, including portion-cut steaks, beef jerky and 3.6 million pounds of ground beef a year.

H&W dates to 1962 and delivers Palama Meat products in addition to rice, sugar and a variety of bakery goods.

The two companies were integrated in 1998 by H&W owner Joseph Azzaro Sr., who bought Palama Meat and went on to open a state-of-the-art processing facility in Kapolei in May 2001.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.