The bankruptcy trustee of Quantum Foods, a former Tyson Foods customer, is suing the Springdale-based meat company to recover $25.7 million. The trustee claims the money was a preferential debt repayment made to certain creditors within 90 days before filing for bankruptcy.

The suit, which was filed March 25 in US Bankruptcy Court, District of Delaware, seeks the return of the money Quantum paid to Tyson Foods and Tyson Fresh Meats, Inc. roughly three months before Quantum declared bankruptcy. Under U.S.bankruptcy law a bankruptcy trustee has the power to undo preferential payments and recover the money to redistribute among other creditors.

Quantum Foods filed for bankruptcy in February 2014 after its food processing business sales to U.S. military declined.

Iowa-based West Liberty Foods LLC bought most of Quantum Foods' assets in June 2014 for $12.7 million.

“Quantum was a customer of ours before it filed for bankruptcy. It’s fairly common in bankruptcy cases for attorneys representing the unsecured creditors’ committee to try and recover payments made to other companies that supply product. We have numerous defenses against these claims under bankruptcy law and intend to vigorously defend this complaint,” said Tyson Foods spokesman Worth Sparkman.

Food giant ConAgra Foods recently posted a net loss in the latest quarter due to weakness in its private brands business. However; the company also raised its full-year forecast on the belief that improvements will be made. The consumer packaged goods company is a major supplier to Wal-Mart with a large sales office in Northwest Arkansas.

ConAgra CEO Gary Rodkin said the performance in private brands was “significantly below expectations,” but the company should see improvement in fiscal 2016 from initiatives to boost execution.

The company said Sean Connolly, former CEO of Hillshire Brands, began his role as CEO-elect this month and becomes CEO on April 6.

The private brands business posted an operating loss of $1.3 billion due to the write-down of goodwill and other intangible assets following deterioration in the business during the quarter. Volume declines across most categories and higher commodity costs dragged on results, the company said.

ConAgra reported a net loss of $954.1 million, or $2.23 per share, in the fiscal third quarter, compared with a profit of $234.3 million, or 55 cents per share, a year earlier. Sales fell 1.8% to $3.88 billion.

In the third quarter, consumer foods volume was flat, while sales of commercial foods grew modestly, the company said.

Chef Boyardee, Hebrew National, PF Chang’s and Slim Jim were among the brands posting sales growth for the quarter. Sales in the division declined 2% overall to about $1.8 billion, due to lower pricing and the impact of foreign currency translations.

The company said it is working on packaging, assortment, product and merchandising initiatives to improve the performance of Chef Boyardee, Healthy Choice and Orville Redenbacher.

The commercial foods unit reported a 1% rise in sales to $1 billion, as the West Coast port labor dispute and challenges facing quick-serve restaurants in Asian markets dampened international results.

The Fayetteville Montessori School is holding it annual art auction fundraiser on Friday, April 3 from 7 to 9 p.m. at the Fayetteville Town Center on the town square.

The school will auction 40 pieces of art produced by the students, and a few teachers at this year’s only annual fundraiser. Event organizers note that the art pieces range from paintings, embroidery, three-dimensional art as well as eco-friendly and Razorback themed projects.

There will be live music and food for the patrons attending this event which is open to the public.

The Fayetteville Montessori School was established in 1974 serving children from six weeks to 12 years of age.

Alumnus William T. Dillard II and philanthropist Johnelle DeBusk Hunt will be recognized as Chancellor’s Medal recipients at the University of Arkansas Towers of Old Main event on April 10. The recipients will be honored at the event along with other benefactors whose cumulative giving or commitment to the university has reached or exceeded $100,000.

Dillard of Little Rock will be honored because of his notable business accomplishments and service to the University of Arkansas and the state. He graduated from the Sam M. Walton College of Business with a bachelor’s degree in accounting and went on to earn an M.B.A. from Harvard.

“Bill Dillard is a very loyal supporter of the University of Arkansas,” said Chancellor G. David Gearhart. “I have enjoyed his friendship over the years and always appreciate his counsel. He is generous, shrewd, and a great conversationalist, whatever the topic. His family has made a lasting impression on our campus with their generosity, and I have always valued his support.”

Dillard has been an active member of the Razorback Foundation Inc. for more than five decades and recently made a gift to the Basketball Performance Center, which will open this summer adjacent to Bud Walton Arena.

Hunt is also being recognized because of her extraordinary achievements in the business world, her philanthropic leadership at the University of Arkansas and her outstanding support of the Northwest Arkansas region and the state.

A native of Heber Springs, Hunt attended the University of Central Arkansas as an education major and started The J.B. Hunt Company in 1962 with late husband Johnnie Bryan “J.B.” Hunt.

“Johnelle Hunt is deeply committed to the University of Arkansas and philanthropy,” said Gearhart. “She not only continues to support the university by volunteering her time and resources, but has also made a priority to hire our students over the years as well. She and J.B. were instrumental to our success during the Campaign for the Twenty-First Century, and she has continued to remain involved with Campaign Arkansas. It is a privilege to recognize her for everything she has done for our campus.”

In 2005, Hunt and her husband made a $5 million pledge that helped the university meet and surpass its $900 million campaign goal, which ultimately prompted the university to raise its goal to $1 billion. That same year, J.B. Hunt Transport Services Inc. made a gift of $10 million for the construction of the J.B. Hunt Transport Services Center for Academic Excellence, a technology-oriented, multi-use building.

Tyson Foods and workers at its Emporia, Kan., beef packing facility have reached a preliminary settlement regarding overtime pay dating back to 2006, according to federal court records.

The meat giant agreed to pay $730,548 in the settlement which is split between the workers and their legal counsel. The final hearing of these two parties is slated for July 2.

Workers in Tyson Foods’ beef packing plant alleged in 2006 that Tyson failed to pay them for time spent performing what they argued were compensable activities such as donning and doffing protective clothing and gear. 

Tyson settled a similar case in 2011 with workers in its Finney County, Kansas plant with  that class being awarded $785,894.

Tyson Foods made a $55,000 grant to the Samaritan Community Center in Springdale that will go toward its SnackPacks for Kids program. 

SnackPacks are designed to send home with students who might not have access to enough food over the weekends. The program supports public schools and Head Start programs in Benton, Washington, Carroll and Madison counties.

The program subsists on contributions from individuals and area businesses and provides food to 7,500 students across the four counties each week. Through the end of the 2015 school year and summer 2015, SCC anticipates it will distribute 343,847 pounds of food with this program.

The Walmart Foundation awarded a $693,750 grant to Mercy’s Behavioral Health Services. The money will be used to fund additional staffing and program ramp up.

Mercy is planning to hire 12 additional behavioral health providers including psychiatrists, nurse practitioners, social workers, therapists and psychological examiners. Three of those health professionals have already been hired.

”The Walmart Foundation grant is significant in helping us move forward to meet this need,” said Dr. Steve Goss, president of Mercy Clinic Northwest Arkansas. “Without a doubt it is a gaping hole in our community and to address it we have to come together. It’s why we are thankful for the Walmart Foundation’s support as we prepare to turn the tide on mental health needs in our area.”

The hire of Dr. Nick Ogle as Program Director of Behavioral Health is the first step toward ramping up the program.  Dr. Ogle has been on the faculty of John Brown University for the last eight years and is also one of the founders of the Joshua Center, which provides affordable counseling services in Fayetteville and Rogers. Dr. Ogle is busy developing a new outpatient model that places therapists throughout NWA in Mercy’s existing clinics.

“Access to quality mental health care is a challenge in many communities, and vital to helping people live healthy lives,” said Karen Parker, Senior Manager, the Walmart Foundation.

She adds that the foundation is pleased to support this issue.

According to Mercy’s community overview, among the adult population, depression and anxiety presents itself as the eighth most prevalent chronic disease. Mercy psychiatrists receive 50 self-referrals weekly and more than 500 internal patient referrals annually. Since 2012, Benton County alone has experienced a 9% growth rate, and the area anticipates continued growth.
 

“From children to adults and senior adults, the need for more behavioral health services shows itself to primary care and specialty physicians each and every day,” Dr. Ogle said. “Physical ailments often walk hand in hand with mental ones. To properly treat the patient, we have to be ready to provide both types of care. It allows the doctors to work closely together in a patient’s best interest.”

University of Arkansas System President Don Bobbitt has named Dan Ferritor as interim chancellor to take over the flagship university’s top position when UA Chancellor G. David Gearhart retires on July 31.

Ferritor has spent the last two years as vice president of learning technologies for the UA System. He served as UA chancellor from 1986-97 and held various other positions during a 32-year career with the university.

“I feel very lucky to have had someone with Dr. Ferritor’s experience willing to come back and take on this challenge while we actively search for the campus’s next chancellor,” Bobbitt said.

Gearhart became the fifth chancellor of the University of Arkansas on July 1, 2008, following 10 years of service to the university as vice chancellor for University Advancement. He previously served at the university for three years as director of development in the early 1980s.

“I am excited and honored to have been asked to serve as interim chancellor to act as a bridge between a proven leader and our next chancellor,” Ferritor said. “With my former experience, I know how vital it is to have those tools in place to act as the glue that holds everything together. With this base, I am confident we will continue to do great things and, more importantly, convinced we will ultimately find a strong new chancellor.”

Ferritor first joined the UA faculty in 1967 as an assistant professor before leaving to complete his doctoral work at Washington University in St. Louis and to conduct early childhood research as part of a federal educational research laboratory. He returned to the UA in 1973 as associate professor of sociology and in 1980 became chairman of the sociology department. He was named provost and vice chancellor for academic affairs at UA in 1985 and was selected as chancellor in 1986, where he led the university until he retired in 1997. He returned to the sociology department from 1998-2005 as university professor, where he held the Jones Chair in Community from 2002-05. 

In 2000, he received the Chancellor's Medal, and soon after UA officials dedicated the Daniel E. Ferritor Hall.

Ferritor became the UA System's vice president for academic affairs before taking on a part-time role as vice president of learning technologies, where he helped prep the launch of the UA System’s 100 percent-online eVersity project.

Bentonville-based America’s Car-Mart has opened its 140th car dealership which is located in Carrollton, Ga., the company reported Thursday (April 2).


The Carrollton location marks the sixth corporate dealership in Georgia and also the sixth new opening this fiscal year.

CEO Hank Henderson said the buy here, pay here used car dealer would open two more lots before the end of April, which is also the company’s fiscal year-end.

The Northwest Arkansas housing sector continues its economic expansion at a steady and sustainable pace, according to the Arvest Bank sponsored Skyline Report that examined data from the second half of 2014. The report was made public on Thursday (April 2).

“We see a good level of activity everywhere throughout the market,” said Kathy Deck, lead researcher for the Skyline Report at the Center for Business and Economic Research at University of Arkansas. “Even though the number of building permits is down a little bit, we make up for it in the overall economic expansion. We had gotten down to a place where completed inventory was depleted. Our inventory numbers are now more consistent with the expansion we are seeing in the recovery.”

The report indicates that building permits declined 4.2% from the year-ago period, while home sales rose 8.3% during the same period. The sustainable absorption rate helped to push up home prices in Benton and Washington counties.

Benton County posted a 7.6% rise in its price per square foot in the back half of 2014. The average price-per-foot was $88.61 compared to $83.39 a year before. In Washington County the average price-per-foot increased to $89.30, a gain of 1.6% from the year-over-year period.

The sold price of existing houses on the market were mixed in Benton and Washington counties compared with the first half of the year.

Benton County: $188,084, up 8.2%
Washington County: $178,774, down 2.9%

In total, 3,691 existing homes were sold in Benton and Washington counties during the last six months of 2014, an increase of 8.3% from the 3,407 sold during the same time period of 2013.

Jennie Hill, senior vice president and real estate manager for Arvest Bank in Benton County, said that the increasing demand and cost of existing homes in the two-county market is an indication that the supply of newly constructed houses within the same average price range is behind the demand curve for the area.

Pat Lockridge was appointed president of Atlas Technology Group of Bentonville. The local startup is one of the fastest growing third party suppliers in the region with 32 employees in 2014 and plans to add 25 more this year.

Founder Nicholas Dozier will remain CEO of Atlas Technology Group, but has promoted Lockridge from senior vice president of sales to the role of president.

“Atlas has been experiencing tremendous growth. We need to continually align our resources to ensure we deliver the best possible products to our customers. Pat will be responsible for ensuring continued excellence within the day‐to‐day operations of the company and I will focus on enhancing our current suite of products as well as creating new tools that continue to differentiate Atlas,” Dozier said.

Prior to joining Atlas in 2013, Lockridge held leadership positions for Campbell Soup, Crossmark and other retail industry service providers. He also serves on the executive board for the Center for Retailing Excellence at the University of Arkansas.

Operations in Fort Smith and Northwest Arkansas are among the six finalists for the 2015 Arkansas Environmental Stewardship Award. The winner will announced later this month as part of Earth Week activities at the Arkansas Department of Environmental Quality (ADEQ).

The list of finalists includes two entrants who have previously been finalists in multiple years.

Dubbed the “ENVY Award,” the annual presentation was established in 2005 by ADEQ to recognize a major contribution by an individual or organization for efforts to enhance and protect Arkansas’ natural resources. Last year’s winner was the Pratt and Whitney aircraft engine manufacturing facility at Springdale for its comprehensive pollution prevention program.

The finalists for this year’s award are:
• Camfil Air Pollution Control of Jonesboro, which operates the world’s largest air filter manufacturing facility, for its overall sustainability program involving a wide range of activities. Components of the program include new office construction incorporating several “green” elements; retrofitting of equipment on the factory’s paint line ovens resulting in reducing natural gas usage by nearly 29,000 cubic feet and recouping the project costs in less than a year; conversion of much of the facility to LED lighting; adoption of manufacturing processes that significantly reduced materials used and waste produced; and a pallet recycling program.

• The City of Fayetteville, now a finalist for three consecutive years, in addition to being a finalist in 2008 and 2009, for its “Recycle Something” educational and marketing program designed to increase recycling by city residents and commercial interests. The effort, promoted through local advertisements and public presentations and displays, includes financial incentives for the use of smaller trash receptacles and encourages more recycling. In 2014 the city saved more than $213,000 in landfill costs, while earning more than $598,000 through the sale of compost generated from yard waste collections.

• Goodwill Industries of Arkansas, also a finalist for the third straight year, for a comprehensive sustainability program involving such elements as energy and waste reduction; recycling and salvage efforts; use of green building principles in construction and remodeling of office facilities; fleet management techniques to reduce fuel and operating costs; and purchase of green products whenever possible. Goodwill also collected nearly 19.5 million pounds of electronic waste, household goods, and clothing for recycling in 2014 and has set a goal of achieving zero waste within five years.

• Kraft Foods Group Inc. for its sustainability and recycling efforts at its Fort Smith facility, which processes various nut products under the Planters label. In 2011 the plant was the first of Kraft’s 37 plants to be certified as being zero waste for landfill material and today is one of only five such Kraft plants. The Fort Smith facility has recycled more than 5,000 tons of materials since 2011, including just over 1,600 tons last year. Waste materials are either recycled or burned to produce energy at the plant. Food scraps are sold for use in animal feed production.

• The Lake Fayetteville Environmental Science Center for its environmental educational and outreach programs and conservation activities. The center, formerly known as the Aquatic Center, has been a cooperative effort between the Fayetteville and Springdale School Districts since 1974. In addition to offering numerous environmental educational programs for students in both school districts, the center offers hands-on activities in both laboratory and field settings for the students to study various aspects of different ecosystems. The center partners with numerous other environmental organizations in the northwest Arkansas area and participates in a variety of projects, including periodic cleanups of Lake Fayetteville and the surrounding area.

• The Saline County Regional Solid Waste District for its “YEA! Team” (Youth Environmental Ambassadors) educational program to teach Saline County students about environmental issues and provide them with assistance for recycling efforts. The district provides recycling collection at all 25 public schools in the county, and students at each school are given assistance on setting up and operating their own recycling programs to collect recyclable materials. During a recent 11-month period, the program collected a little more than 114 tons of paper and cardboard for recycling from all schools. In addition, two schools conducted individual electronic waste collection drives that resulted in diverting 4,800 pounds of e-waste from landfills.

The six finalists have been invited to attend the April 24, 2015, meeting of the Arkansas Pollution Control and Ecology Commission, where this year’s ENVY Award winner will be announced as the final event in the ADEQ’s annual Earth Week observance. The meeting will begin at 9 a.m. in the ADEQ Headquarters Building, 5301 Northshore Drive, North Little Rock.

AEP Southwestern Electric Power Company (SWEPCO) and Rogers-based Stitt Energy Systems have been recognized for their energy efficiency achievements through the Energy Star program.

On Monday the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) made the Energy Star announcements.

“EPA applauds this year’s Energy Star Partner of the Year Award winners, who have demonstrated innovative strategies to help their customers, partners and stakeholders save energy and cut greenhouse gas emissions,” said EPA Regional Administrator Ron Curry. “Their commitment to improve the nation's energy and environmental outlook will provide the next generation a brighter, healthier future.”

SWEPCO is receiving Partner of the Year award with 50 other organizations for strategically and comprehensively managing their energy use. These organizations promote Energy Star products and practices in their own operations, while providing energy-efficient products and services to their customers.

SWEPCO will also receive the Home Performance with Energy Star award for their superior efforts in promoting the Home Performance with Energy Star program, which is administered by DOE with support from EPA.

Stitt Energy Systems is receiving special recognition for their longstanding and continuous commitment to constructing ENERGY STAR certified homes in Arkansas.  

EPA will recognize 128 partners in 33 states on April 20 at the Marriott Wardman Park Hotel in Washington, D.C. Energy Star has over 16,000 partners working to protect the environment through greater energy efficiency, including manufacturers, retailers, public schools, hospitals, real estate companies, and home builders.

The volunteer auxiliary at Northwest Medical Center in Bentonville seeks new socks and underwear donations for disadvantaged children in the area. Dubbed Operation Sock-It-To-Me kicked off this month and will run through April 24.

The initiative was inspired three years ago by a real life childhood experience of an auxiliary member. The socks and underwear will benefit disadvantaged children in children’s shelters, foster care programs and four Benton County Schools.
 
“Happiness back then was a new pair of socks,” explained BJ Johannsen, volunteer auxiliary member.

Johannsen lived in an orphanage for a short time in the 1940s when her parents were not financially able to care for her. The local auxiliary took on this challenge in 2013 and in that first year, garnered 2,000 pairs of socks.
 
“It may seem like a small thing not to have socks to warm your feet, until you are the one without socks,” said Cindy Sadler, volunteer coordinator at the Bentonville hospital.

 
This year, Northwest Medical Center - Bentonville Auxiliary has partnered with several Arvest Bank branches, Christian Women’s Club of Bella Vista and the Doubletree Hotel to serve as drop off centers for the donations.

Discount retailer Dollar Tree said Tuesday (April 7) it expects to be able to complete its purchase of competitor Family Dollar in May, and it will have to sell about 340 Family Dollar locations to close the deal.

Dollar Tree said the Federal Trade Commission is almost finished reviewing the $8.5 billion acquisition and has identified 340 stores that it wants the company to sell in order to preserve competition for consumers. Dollar Tree said all or almost all of those stores will be Family Dollar locations. It said the stores have about $47.4 million in operating income.

The deal for Family Dollar was first offered in July. The FTC's review has lasted longer than the companies expected, as Dollar Tree had hoped to close the deal as early as March.

The National Retail Federation reports that import cargo volume at major retail container ports is expected to rise 8% in April over the same time last year. The trade group cites the ongoing recovery from a backlog of cargo that build up late last year between tensions over a new labor agreement.

“Progress is being made but there’s still a lot of cargo waiting to be loaded onto trucks and trains and moved across the country even after it’s unloaded from the ships,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “The situation is getting better but we’re still far from normal.”

The Pacific Maritime Association and the International Longshore and Warehouse Union tentatively agreed on a five-year contract in February. While ILWU leadership has recommended that members vote for ratification, votes won’t be counted until May 22."

Ports handled 1.2 million containers (20 feet long) in February, the latest month for which after-the-fact numbers are available and historically the slowest month of the year. That was down 10.3% from January and down 3.6% from February 2014.


March was estimated at 1.48 million containers, up 13.5% from 2014. April is forecast at 1.55 million containers, up 8% from last year. As operations normalize in the coming months exports are expected to be 1.57 million containers in May up 5.6%.

The first half of 2015 is forecast at 8.6 million containers, an increase of 3% over the same period last year, according to Hackett Associates a contributor to the monthly Global Port Tracker report.


“The disruption on the West Coast appears to be over and great measures are being taken to clear the backlog of ships sitting offshore,” Hackett Associates Founder Ben Hackett said. “Of course, all those ships being discharged are causing landside issues as workers try to get containers out of the terminal gates and onto trucks and rail.”

Drugstore giant Walgreens said Thursday (April 9) it plans to shutter about 200 stores or 2% of its U.S. footprint as part of a $1 billion cost savings plan over the next three years.

Walgreens operates about 8,232 stores in the U.S., a base it has been expanding rapidly to the tune of 500 new stores annually over the past decade. This shift in strategy comes on the heels of the $16 billion purchase of Alliance Boots last year. Alliance Boots operates the largest pharmacy chain in the United Kingdom. The company said no closures are slated for this European business unit.

The company hasn't finalized the list of the U.S. stores it will close, but Walgreen Co. President Alex Gourlay told analysts it was looking at locations where the population seemed to be moving away.

"This really is just getting the right stores in the right places," he said.

Walgreens also said it will reorganize its corporate operations and streamline its information technology and other functions. It expects these moves to add $500 million to its cost reduction goal.

The news was reported during the company's earnings call on Thursday in which the drugstore chain earned $2.04 billion, or $1.93 per share, in its fiscal second quarter.

Earnings, adjusted for one-time gains and costs, were $1.18 per share, which beat analyst expectations. Walgreens also announced a forecast for full-year earnings in the range of $3.45 to $3.65 per share.

U.S. Rep. Steve Womack, R-Rogers, has been named vice-chairman of the House Appropriations Subcommittee on Labor, Health and Human Services, and Education.

The announcement was made by U.S. Rep. Hal Rogers, R-Ky., and chairman of the House Appropriations Committee. There are 12 Appropriations subcommittees for the 114th Congress. The vice chairs serve as chair of the subcommittee in the absence of the chairperson, and assist them in official Committee duties.
 
“The Vice Chairs for the Appropriations Committee have distinguished themselves as knowledgeable on the appropriations process and are committee to responsible budgeting,” Rogers said in the statement. “These Members will play an integral role in bringing each of the 12 Appropriations bills from Subcommittee to the House floor, and I know that they will live up to the demands of the job over what I expect will be a tough but successful appropriations year.”

The Northwest Arkansas Naturals and Arvest Bank reached an agreement to extend the bank’s naming rights to the Springdale-based Arvest Ballpark through 2027. The first naming rights agreement was established in 2007, the construction date for the stadium and the year the Northwest Arkansas Naturals were established.

Justin Cole, general manager of the Northwest Arkansas Naturals, said Arvest Ballpark is a great home for the ball club and the bank is perfect partner.

“Between the area’s outstanding support of our team and the numerous special events and fundraising activities hosted at the stadium, almost 2.5 million people have enjoyed the hospitality of Arvest Ballpark since it opened to the public for our first season in 2008,” Cole said.

Lisa Ray, president for Arvest Bank Springdale, said the ballpark has become a gathering place for friends and family to enjoy baseball, concerts, activities and events which is what the bank envisioned when it first sponsored the venue in 2007.

“The support of the Northwest Arkansas community and the partnership with Arvest Bank has been crucial to the overall success of the ballpark,” Bob Rich, chairman of Rich Products Corporation and Rich Baseball Operations. “We’re proud of what the ballpark has been able to provide the community and are thrilled to be extending our tremendous partnership with Arvest Bank into the future.”

The Northwest Arkansas Food Bank just purchased a new freezer made possible by a $75,000 donation from Tyson Foods. The addition will help the food bank store more product for the 180 partner agencies it distributes food to annually.

Last year the NWA Food Bank distributed 6.7 million pounds of food serving nearly 700,000 hungry people in Washington, Carroll, Madison and Benton counties.

Food bank officials said the agency has had to turn away food donations in recent years because of a lack of cold storage capacity.