Photo by Tangerine Newt on Unsplash
Tropicana Could Potentially File for Chapter 11 Bankruptcy Protection
February 28, 2025
Tropicana, a longtime purveyor of orange juice nationwide, is potentially in talks to file for Chapter 11 bankruptcy protection.
According to a report from WFTV, the parent company of the popular orange juice brand, Tropicana Brands Group, has been facing a “financial crisis” for a long time, with profits and sales decreasing significantly in recent years. Higher prices, increased competition, and changing consumer tastes have all also factored into the latest spate of decreases.
Tropicana executives also blame the recent Florida hurricanes for destroying the orange crops that make the juice.
Per CNN, Tropicana Brands Group’s income fell 10% last quarter and its revenue declined 4%, according to data from Debtwire.
Tim Hynes, head of credit research at Debtwire, told the outlet, “Tropicana’s financial difficulties have raised concerns about how the company will manage its balance sheet. Tropicana faces an uphill battle.”
According to the American Farm Bureau Federation, Citrus output in the United States has declined, undermining the country’s long-held position as a global market leader. In 1970, the United States produced about half of the world’s oranges. By 2000, this figure had declined to 25%, and it dropped to 5% by 2024. Brazil (35%), China (16%), and the European Union (12%) have accounted for the majority of that share decline.
Tropicana executives have not commented on the potential bankruptcy.
Tropicana Isn’t the Only Legacy Brand Facing Bankruptcy
Many legacy brands in the United States are going through a bit of financial difficulty. Recent reports suggest that Hooters could also be filing for bankruptcy soon.
According to those familiar with the proceedings, the chain is working with law firm Ropes & Gray to prepare a bankruptcy case that will be filed with the courts in the coming months, though sources requested anonymity due to the sensitive nature of the proposal.
Hooters had previously been working on a turnaround strategy with consultants at Accordion Partners and seeking advice on how to manage its debt load. Foot traffic had slowed across the brand countrywide, and in response, the New York Post claimed it would eliminate around 40 sites in 2024. The restaurant franchise now has over 300 outlets in the United States.
According to the outlet, several celebrities, including Phoenix Suns guard Devin Booker, have expressed concern about the restaurant chain’s potential bankruptcy filing. Booker wrote on X, “Plz don’t go Hooters.” Additionally, golf star John Daly and his son, John Daly II, have recently signed partnership deals with the brand.
Recent News
