Business bankruptcy options provide a variety of resources to struggling businesses. A Tennessee-based company, Pure Foods, recently filed for Chapter 11 bankruptcy protection.
The producer of healthy snacks filed for Chapter 11 reorganization bankruptcy protection in its business bankruptcy filing. The company’s CEO reported that the company is seeking a buyer. The company has 100 creditors and liabilities, ranging from $1 million to $10 million.
Last year, the company opened its global headquarters and primary manufacturing facility in Tennessee with some local official present. The company reported it has $22 million invested in the grounds, equipment and facility. At the end of last year, the company announced a temporary shutdown to restructure the business. The company reports the Chapter 11 bankruptcy filing has been made to allow an interested buyer to purchase the assets of the business.
The CEO of the company reported the company has several interested buyers, and it hopes to have final bids for purchase of the business later this spring. Chapter 11 business bankruptcy provides different options to struggling business to reorganize, which can include attempts to raise capital or negotiate the sale of the business.
The Chapter 11 business bankruptcy process, like all bankruptcy filings, provides a temporary stay that prevents creditors from pursuing collection actions. The filing party is able to take their next steps, such as reorganizing or negotiating with potential buyers.
The Chapter 11 bankruptcy process can be an important tool for struggling businesses to fully understand and consider. Because it can also be complex, it is important for companies or parties considering Chapter 11 bankruptcy to be well acquainted with the process and different options that may be available to them.
Source: Johnson City Press, “Pure Foods files for Chapter 11 bankruptcy,” Hanky Hayes, Feb. 7, 2017