Fresh-cut fruit and vegetable supplier Country Fresh Holding has filed for Chapter 11 of the US Bankruptcy Code at the Southern District of Texas to facilitate the sale of its assets.
As part of this voluntary petitions for reorganisation, Country Fresh is planning to sell all Country Fresh brands including SunRich and Tiffany Gate.
Country Fresh president and CEO Bill Andersen said: “Pandemic-related supply chain and business disruptions have affected Country Fresh and our customers dramatically over the past year.
“Despite efforts to improve company results before and during Covid, we believe that this sale transaction will result in a better-capitalised company and positions our customers, suppliers, employees, and all other stakeholders for maximum success going forward.”
Country Fresh, which is part of the Fresh Food Group, signed binding stalking horse purchase agreement with private-equity firm Stellex Capital Management.
The selection is subject to potential overbids at an auction, expected to take place in the next coming weeks.
Additionally, Country Fresh secures commitment from some of its existing lender group to provide debtor-in-possession financing.
The investment will enable Country Fresh to continue to fulfil current obligations while pursuing the sale of its assets.
During the process, the company’s manufacturing and distribution facilities will continue normal operations.
Both the auction itself and the transaction should be complete within 60 days.
Country Fresh, along with its subsidiaries provide full-service, fresh food solutions for various sectors including retail, foodservice, club and convenience stores.