Pilgrim’s Pride, a $12 billion chicken processing company, is fighting for their lives right now, with a looming bankruptcy filing and their stock in the tank at about $1.00 per share, down from $33 a year ago. Much of this turmoil is caused by the confluence of rising input costs and declining demand, colliding with an enormous debt load. 

The bulk of this debt came with the acquisition of Gold Kist (a competing chicken processor) two years ago, leaving Pilgrim’s Pride with a 10-1 debt to earnings ratio. In September they announced a $53 million third-quarter loss, and are projecting more bad news for the fourth quarter. Now the banks are swooping in because of some broken covenants, and they are desperately trying to restructure this massive debt in an all-but-locked-up credit market. 

This might just sound like another casualty of the crappy credit markets, but what floored me, and emarassed me, about this story, was the spiritually arrogant attitude of the CEO, Bo Pilgrim which led up to this point.  On Oct 12 the Wall Street Journal reported a quote from the fabled “devout Christian” owner and founder, Bo Pilgrim, regarding his decision to pursue the Gold Kist purchase. 

According to the WSJ:

“At the time of the Gold Kist purchase, Mr. Pilgrim, a devout man, said that the "Lord had foreordained the deal." In the 2007 second edition of his autobiography, "One Pilgrim's Progress," he wrote: "I figured that if the Lord wanted us to succeed, He would help us find the credit."

Are you kidding me? God told him that the deal was foreordained? The good Lord would help him find credit? And, Surprise! Just in time for the implosion of the commodity and credit markets! This clearly was not a God-deal, but a human-deal driven by one man’s ego dressed up in Christian clothes. They’ve laid off over 2,000 employees and shut down facilities since then. Was that foreordained by the Lord too? No, it’s just bad timing, too much debt, and the luck of the draw. Which, let’s face it, is so often the case in business dealings. 

So tell me: was Mr. Pilgim’s blathering about God’s special approval of his bad deal a result of: (a) arrogance, (b) ignorance, or (c) just another Christian-nutcase making the rest of us look like we’re idiots? Whatever it is, he has crossed the fine line of “putting God first,” to having sprung headlong into putting his ego first and naming it after God. Doesn’t that sound like idolatry? Or, just a really, really bad case of spiritual narcissism?  

I know that Bo Pilgrim has been very successful and that he has tried to build a company on Christian values, which is admirable. And there’s nothing wrong with utilizing debt for making strategic acquisitions or taking calculated risks. It’s part of making good business decisions and maximizing shareholder value.  But praying about it does not mean that God is making guarantees. Failure is always an option. How can any of us ever forget that? 

I believe strongly in mingling our spiritual faith with our work. I believe God cares about my company, my deals, my desire to succeed and prosper, and I will always seek out God’s wisdom and guidance for decisions, both big and small. But I do NOT believe that God owes me success by virtue of the fact I have prayed about a strategic decision. I am human, I am flawed, and I am not God’s special Golden Messenger on earth.  

To add to their misery, Pilgrim’s got slapped with a class action lawsuit on behalf of shareholders who bought the company's stock during the period between May 5 and Sept. 24, 2008, alleging that the company misrepresented its financial position and concealed how its capital problems would affect the business performance.

Gosh, Bo, what would Jesus do?

Pilgrim’s Pride is in for some tough times. This company may come through this yet, by the skin of their teeth. If so, maybe Bo and God will have the last laugh on me. Instead, I hope that this close call is enough to teach Bo Pilgrim a big lesson in spiritual humility.