Major Food Supplier for Pepsi & Kraft Heinz Foods Files for Chapter 11 Bankruptcy Protection

A major food supplier that provides snacks for such brands as Pepsi and Kraft Heinz has filed for Chapter 11 bankruptcy protection, becoming the latest company to do so.

The Street reports that according to a statement from Chief Restructuring Officer Robert M. Caruso, Hearthside Food Solutions and 22 affiliates filed their petition in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, citing $2.1 billion in upcoming maturities of its first-lien revolver and first-lien term loan in November 2024 and May 2025, respectively.

According to company management, they have “widespread support” from unsecured noteholders, equity holders, and “significant majorities” of its first lien and second lien lenders.

The food supplier has filed a motion to approve $300 million in debtor-in-possession financing to fund operations while it enters the Chapter 11 process.

“Hearthside has filed a number of customary ‘first-day motions’ with the court to facilitate a smooth transition into Chapter 11 and operate without disruption during the process, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring obligations to vendors,” the food supplier said in a statement.

Red Lobster Is Another Food Supplier That Filed for Bankruptcy

The food supplier is just the latest to file for Chapter 11 bankruptcy protection. That said, a Chapter 11 filing is not a “death sentence” to a company, as Red Lobster proved.

Back in September, the once-struggling casual seafood restaurant declared that it had successfully exited Chapter 11 bankruptcy.

According to a press release, the restaurant’s new 35-year-old CEO, Damola Adamolekun, has formally assumed control of the business and pledged to breathe fresh life into the struggling brand.

“Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” he said in a statement accompanying the press release. “From the opening of our first restaurant in 1968, Red Lobster has focused on serving diners high-quality seafood at affordable prices. I’ve been a Red Lobster fan since my first dining experience as a 9-year-old at our Springfield, Ill, restaurant — and as I’ve prepared to step into the role of CEO, I’ve met hundreds of diners across the country who, just like me, are as passionate about Red Lobster now as they were on their first visit.”