Hearthside Food Solutions has emerged from Chapter 11 bankruptcy protection under a new name after completing a financial restructuring.
The move has allowed the US-based snack maker to shed approximately $2bn of funded debt, “positioning the business for significant long-term growth”, the company said in a statement.
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Hearthside filed for voluntary prearranged Chapter 11 cases in the US Bankruptcy Court for the Southern District of Texas in November.
Maker’s Pride now has approximately $600m in liquidity, which includes $200m raised through an equity rights offering and around $190m secured through a new asset-backed loan facility.
In the statement, the company said: “Maker’s Pride moves forward as a well-capitalised company under the majority ownership of a group of its existing lenders, including funds managed by Apollo and Oaktree Capital Management, L.P.”
The Illinois-based company was acquired by PE firms Charlesbank Capital Partners and Partners Group Holding in 2018.
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By GlobalDataJust Food asked Maker’s Pride’s representatives if either or both of Charlesbank Capital Partners and Partners Group Holding still own any equity in the company – and, if not, what they received for their shares. The company’s representatives referred this publication back to this week’s statement.
In the statement, Maker’s Pride CEO Darlene Nicosia said: “With a healthy balance sheet and additional capital to achieve our goals, we are well-equipped to continue serving our customers with excellence.”
The company, which has 27 facilities, offers products including baked, refrigerated, and frozen foods, as well as sweet and salty snacks and nutrition bars.
In March, the company revealed plans to close its Anaheim plant, a move that will affect 175 jobs.
A Worker Adjustment and Retraining Notification (WARN) filed with the California Employment Development Department indicated that the plant is set to close by 27 April.
