Foremost Dairies Placed In Receivership

Foremost Dairies Northwest, the owner of three dairies in Washington and Oregon, including the former Carnation Dairy plant at University Village, has been placed in receivership by a King County Superior Court judge.

The move puts a court-appointed receiver in control of the dairy company.

Dan Szasz, the receiver, replaces Tom Lusby, Foremost president. Lusby, the third Foremost president this year, was unavailable for comment.

Foremost is owned by investors from Sun Valley, Idaho, who bought three former Carnation dairies in early 1989 and operated them under the Foremost name. The company employs about 350 with 175 of those working in Seattle. The dairies remain open for business.

U.S. Bank of Washington, Foremost's prime lender, requested the receivership.

U.S. Bank's attorney, Kevin Padrick of Miller, Nash, Wiener, Hager & Carlsen in Portland, said the bank moved to protect its interest in Foremost because dairy products have a short shelf life, any legal wrangling that causes undue delay could undermine the company's ability to keep current on its loans. ``It's a perishable asset,'' he said.

Foremost owns dairy plants in Seattle, Spokane and Portland, and distributes products in five states. It packages dairy products under its own label and for Albertsons, IGA, Morning Mist, Maid O'Clover and Circle K.

KMC Group Inc. of Sun Valley bought the plants last year from Nestle SA, the international food giant that had owned the Carnation facilities for three years. It changed the plants' name to Foremost last December.