Joint Letter to the Vice President Explains the Ongoing Economic Toll to Foodservice
Mark Allen, President & CEO of the International Foodservice Distributors Association (IFDA) joined with the leaders of the National Fisheries Institute and the United Fresh Produce Association on a letter
to Vice President Mike Pence outlining their ongoing concern around uncollectable debt.
“To date, the government programs available have not addressed one of foodservice distribution’s biggest problems – large uncollectable debts owed to distributors for food that restaurants could not use or repay due to COVID-related government shutdown orders. Seafood distributors report a $2.2 billion loss. Fruit and vegetable distributors report about $5 billion in losses. Broadline and systems distributors report more than $5 billion in debt caused by the shutdown orders. Banks lend foodservice distributors money based on a mix of debt owed to them, inventory, and other assets. That basis has been reduced dramatically as accounts receivable have become uncollectable, and inventory values have declined. This creates a significant limitation on distributor liquidity at a time when they need it most in order to extend credit to their customers so they can restart their businesses. We are asking for Vice President Pence to work with Secretary Mnuchin and other Administration leaders to consider options to eliminate or mitigate the accounts receivable and liquidity issues currently facing America’s foodservice distributors.”
About the International Foodservice Distributors Association
The International Foodservice Distributors Association (IFDA) is the premier trade organization representing the more than $300 billion foodservice distribution industry and the 350,000 people it employs. This industry ensures a safe and efficient supply of food and products to more than one million restaurants and foodservice outlets in the U.S. every day. For more information, visit www.ifdaonline.org