View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 7, 2019

CTI Foods completes financial restructuring and emerges from bankruptcy with new owners

US-based CTI Foods has issued an update on its financial restructuring process and Chapter 11 bankruptcy status.

By Leonie Barrie

US-based CTI Foods has announced that it has completed its financial restructuring process and emerged from Chapter 11 bankruptcy.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

It is now majority-owned by a consortium of financial backers.

The Idaho-based food group revealed in March that it had engaged in a Chapter 11 restructuring plan and had brought in Mike Buccheri to replace Sam Rovitt as chief executive officer.

The company, which supplies US restaurant chains and branded food companies, said it had reached an agreement with the majority of its lenders on a “comprehensive balance sheet restructuring” in a move that would reduce its debt by more than US$400m.

The firm, which makes Jimmy Dean brand products for US meat giant Tyson Foods, has now revealed that its restructuring has been completed, and the company is “moving forward with approximately $110m of committed exit financing from a new ABL [asset-based lending] facility, providing significant financial flexibility to support continued investments on behalf of its customers”.

An investor group led by Black Diamond Capital Management, Barings and the asset management and investment advisory business of Guggenheim Partners has acquired a majority interest in CTI. Their exact percentage share of CTI has not been disclosed.

Buccheri said: “Today marks the beginning of the next chapter for CTI Foods as an even stronger company. Through this process and with the support of our new sponsors, we have improved our capital structure and significantly reduced our debt. 

“CTI Foods is now well-positioned to build on our core business through increased investments in innovation, product development, and food safety.”

CTI Foods offers a “diverse range of custom food solutions” to the foodservice and restaurant industries, including raw and pre-cooked proteins, dry sausage, soups and sauces, and dehydrated beans. It has seven food-processing facilities and more than 1,700 employees across six states.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food