Latest news with #ColeSchotz
Yahoo
02-07-2025
- Business
- Yahoo
Iconic 135-Year-Old Food Brand Files for Chapter 11 Bankruptcy
Iconic 135-Year-Old Food Brand Files for Chapter 11 Bankruptcy originally appeared on Parade. One of the country's largest food producers and distributors just filed for Chapter 11 bankruptcy. The news follows a series of "challenges" faced by the company, which it said were "intensified by a dynamic macroeconomic environment," something that has plagued many of its industry colleagues (like craft producer Boston Harbor Distillery, Bertucci's, Hooters, WeightWatchers and even Kroger said it would be closing 60 stores by the end of 2026). On Tuesday evening, Del Monte Foods–yes, the makers of so many popular fruit and veggie products–announced it had voluntarily commenced Chapter 11 proceedings in the New Jersey courts and would be pursuing a sale of the company. The company said that its non-U.S. subsidiaries are not included in the filing and continue to operate normally. Related: While it looks for a buyer, Del Monte Foods said it brought on several advisors, including Herbert Smith Freehills Kramer and Cole Schotz (legal counsel), Alvarez & Marsal North America (financial advisor), and PJT Partners (investment banker), to help it move on a more sustainable path forward. "This is a strategic step forward for Del Monte Foods," said Greg Longstreet, president and CEO of Del Monte Foods, in a statement. "After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success." The company, which has been around for over 135 years, currently distributes items like canned fruit, vegetables and snacks under its name as well as related products under the College Inn brand (broths and stocks), Contadina (canned tomatoes), Kitchen Basics (broths and stocks), JOYBA (bubble tea), S&W (canned produce) and Take Root Organics (canned produce) brands. Its subsidiaries, which are not affected, include Del Monte Fresh (makers of the viral Pinkglow Pineapple). Del Monte Foods said that despite the challenges, it will continue its operations of delivering "high-quality food products that are healthy, delicious, and convenient" and secured $912.5 million in financing to support itself through the proceedings. "While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all," Longstreet explained, adding, "I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders for their support in helping us achieve our long-term goals." Next: Iconic 135-Year-Old Food Brand Files for Chapter 11 Bankruptcy first appeared on Parade on Jul 2, 2025 This story was originally reported by Parade on Jul 2, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
07-05-2025
- Business
- Axios
Rite Aid stores to close or be sold to new owner in bankruptcy
All Rite Aid stores will close or be sold to a new owner in the coming weeks and months as the struggling retailer goes through its second Chapter 11 bankruptcy filing. Why it matters: The Philadelphia-based drugstore chain is looking to sell both its pharmacy business and its stores, according to bankruptcy protection documents. Rite Aid bankruptcy 2025 The big picture: Rite Aid faced a host of problems following its previous bankruptcy, including inventory shortages as vendors played hardball with the company on trade terms. That "negatively impacted liquidity and prevented the company from replenishing its front-end stock," according to Fitch Ratings analyst Joshua Clark. "The lack of inventory led to decreased sales, particularly in high-margin front-end products, exacerbating liquidity problems." The company has also historically been "significantly burdened by its suboptimal lease portfolio," chief transformation officer Marc Liebman said in a court filing. What we know about Rite Aid closing stores By the numbers: The company has 1,240 stores in 15 states listed on its store locator website Wednesday. California has 347 locations, Pennsylvania has 345 and New York has 178 locations. The retailer has been closing stores for years before its 2023 bankruptcy filing, which it entered with more than 2,100 locations. Zoom in: In a letter to customers, Rite Aid says the "majority of our stores will remain open and operating for the next few months where you can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations." "We are working to facilitate a smooth transfer of customer prescriptions to other pharmacies," the company said. What they're saying: "There have been some rumors about stores closing immediately and going dark, especially in New York. These rumors are not true," Alice Eaton, an attorney with the Cole Schotz law firm, said during a bankruptcy hearing Wednesday. Eaton noted five stores would close this week and said those locations are in: Portland, Oregon; Brooklyn, New York; Peterborough, New Hampshire; Vernon, Pennsylvania; and Cheshire, Connecticut. "We expect Rite Aid is likely facing ongoing challenges similar to its drug retail peers, including rate reimbursement pressure that is constraining pharmacy margins and increased front-end competition from lower-priced competitors in the discount, grocery, and ecommerce space," Fitch's Clar said. Rite Aid gift cards and returns State of play: Rite Aid says it will no longer honor its store gift cards or accept any returns or exchanges starting June 5. The company also has stopped issuing Rite Aid Rewards points on qualifying purchases. It says accrued points and BonusCash will expire per the standard terms and conditions. Is my Rite Aid closing? See the initial closing list An initial closing list in court documents lists 47 closing stores. What's next: More store closings are expected and possible sales of locations. "There are wildcards, such as Amazon, which could at least buy the Seattle native Bartell Drugs subsidiary. But this is a long shot," said Neil Saunders, managing director of GlobalData. "The most likely outcome is that other chains will cherry pick Rite Aid stores," Saunders said. "Some of these are in rural locations where the chain has more of a captive audience. However, this route would not necessitate a wholesale purchase of the brand or its assets."
