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Central Washington fruit giant files for bankruptcy, selling orchards | Capital Press.Central Washington fruit giant files for bankruptcy, selling orchards Published 7:00 am Tuesday, June 9, 2026 Gebbers Farms Inc.’s flagship company has filed for bankruptcy and plans to sell more than 8,000 acres of orchards in north-central Washington to the Legendary Fruit Company.Brewsters Heights Packing and Orchards and 12 subsidiaries filed to reorganize under Chapter 11 protection June 4.The company said it owes two lenders, Prudential Insurance Company and BMO Bank, a combined $225 million.Legendary, which has operations in Wapato and Chelan, announced the next day it intends to buy the orchards and exclusive rights to produce SugarBee, Rockit, Lucy Rose and Lucy Glo apples.The terms were not disclosed and the sale must be approved by the U.S.bankruptcy court for Eastern Washington.Brewsters is seeking court approval to continue paying more than 3,700 employees in orchards and warehouses to produce a crop this year.Orchards and packing houses are operating as usual and customer orders are being fulfilled, Brewsters spokeswoman Amy Philpott said.The sixth-generation operation was founded by the Gebbers family in 1885.Filing for bankruptcy was a tough decision for the family, Philipott said.“They feel strongly that this is the best long-term strategy for sustaining the company.” Brewsters and Legendary are neighbors and the merged operation would have 15,000 acres and be able to produce 12 million boxes of apples and 4.5 million boxes of cherries a year, according to Legendary.“The Gebbers name is the preeminent name in northern Washington for apples, pears and cherries,” Legendary CEO Steve Clement said in a statement.‘Severe headwinds’ Prudential and BMO loans to Brewsters go back to 2020, according to court records.Beginning in early 2024, Prudential and BMO conditioned further loans on Brewsters selling or refinancing.The company hired a company to market its assets in June 2025.“Severe headwinds” faced by Washington agriculture as a whole worsened the financial distress, Brewsters chief financial officer Brooke McGuire said in a court declaration, citing high labor costs and low returns for the industry.Washington’s economic uncertainty has been driven by rising input costs, trade and labor concerns, fluctuating tariffs, land costs and a changing climate, McGuire stated.By the beginning of this year, the company and lenders were talking almost daily about the future of the company.As the spring progressed, operating costs escalated, according to McGuire.The company nearly filed for bankruptcy earlier, but was able to obtain financing for the 2026 crop.The company received seven letters of intent from potential buyers.Brewsters’ board approved the proposal from Legendary, according to court records.The company anticipates hiring 3,065 workers from Mexico and 364 workers from Jamaica this year.The monthly payroll peaks in July at $11.5 million, according to court records.Businesses involved in the bankruptcy are Brewster Heights Packing & Orchards; Gebbers Farms; Gebbers Orchards; C&M II; D&E Storage; Eastco; GF SA; Northco; P&G Orchards; REPO; TJF Properties; Westco Orchards and Westco Sales.