GREENSBORO, NC, March 11, 2019 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (HFFG) today announced that its majority-owned Atlanta affiliate, Kirnland Food Distribution, Inc., has reached an agreement with the US Department of Labor (DOL) to fully resolve an investigation into wage payment practices. The wage practices alleged relate to the period from April 2013 through July 2018, prior to HF Group Holding Corp.’s merger with Atlantic Acquisition Corp. and the establishment of HF Foods Group Inc. as a publicly traded company listed on Nasdaq.
Pursuant to the agreement, Kirnland will pay a total of $1,794,752 for alleged back wages and liquidated damages as restitution to 133 current and former employees of Kirnland and five contract labor suppliers, relating to DOL allegations of failure to pay minimum and overtime wage rates in certain instances. Kirnland will also pay a penalty of $36,414 to DOL and has agreed to undertake a number of affirmative compliance measures going forward. HFFG has adequately reserved for the settlement payments and does not expect such payments to affect future results of operations.
HF Foods Group cooperated fully with DOL and voluntarily resolved the investigation without the time and expense of litigation. The Company’s management believes the agreement is in the best interest of the Company.
About HF Foods Group Inc.
HF Foods Group Inc. (HFFG), headquartered in Greensboro, North Carolina, is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian/Chinese restaurants and other foodservice customers throughout the Southeast region of the United States. With three distribution centers along the U.S. eastern seaboard, HF Foods aims to supply the increasing demand for Asian American restaurant cuisine. With an in-house proprietary ordering and inventory control network, more than 3200 established customers in 10 states, and strong relations with growers and suppliers of food products in the US and China, HF Foods Group is able to offer fresh, high-quality specialty restaurant foods and supplies at competitive prices to a growing base of customers. For more information, please visit: https://hffoodsgroup.com/
All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, unfavorable macroeconomic conditions in the United States, competition in the food service distribution industry particularly the entry of new competitors into the Chinese/Asian restaurant market niche, increases in fuel costs or commodity prices, disruption of relationships with vendors and increases in product prices, US government tariffs on products imported into the United States, particularly from China, changes in consumer eating and dining out habits, disruption of relationships with or loss of customers, our ability to execute our acquisition strategy, availability of financing to execute our acquisition strategy, control of the Company by our Chief Executive Officer and principal stockholder, failure to retain our senior management and other key personnel, our ability to attract, train and retain employees, changes in and enforcement of immigration laws, failure to comply with various federal, state and local rules and regulations regarding food safety, sanitation, transportation, minimum wage, overtime and other health and safety laws, product recalls, voluntary recalls or withdrawals if any of the products we distribute are alleged to have caused illness, been mislabeled, misbranded or adulterated or to otherwise have violated applicable government regulations, failure to protect our intellectual property rights, any cyber security incident, other technology disruption, or delay in implementing our information technology systems, statements of assumption underlying any of the foregoing, and other factors disclosed under the caption “Risk Factors” in our proxy statement on SEC Schedule 14A for our special meeting of shareholders held on August 10, 2018 as filed with the SEC on July 18, 2018 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.
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