Content about Bankruptcy

February 27, 2013
Reports: Flowers Foods to buy Wonder Bread

According to published reports, Flowers Foods is set to buy Hostess bread brands, including Wonder bread, for $360 million after no other bidder came forward with a competing offer, a source familiar with the sale acknowledged Wednesday.

NEW YORK — According to published reports, Flowers Foods is set to buy Hostess bread brands, including Wonder bread, for $360 million after no other bidder came forward with a competing offer, a source familiar with the sale acknowledged Wednesday.

According to a Reuters report, Hostess, which went bankrupt last year, was scheduled to host an auction on Thursday for the brands — which also include Butternut, Home Pride, Merita and Nature's Pride — but as no other bids were announced, the company will not go through with an auction.

February 25, 2013
Meet Bob Miller

Bob Miller has a knack for turnarounds. In 1999, he took over Rite Aid as chairman and CEO, helping to stabilize the drug store chain at a time when Rite Aid was on the brink of bankruptcy, and many analysts were projecting Rite Aid would fold.

Bob Miller has a knack for turnarounds. In 1999, he took over Rite Aid as chairman and CEO, helping to stabilize the drug store chain at a time when Rite Aid was on the brink of bankruptcy, and many analysts were projecting Rite Aid would fold.

Miller joined Rite Aid soon after building Fred Meyer into a supermarket powerhouse. Kroger acquired the Midwest chain in a $8 billion deal in 1999.

January 10, 2013
Supervalu sells 877 stores, reuniting Albertsons under one operator

In a move that will reunite all Albertsons stores under one operator, Supervalu on Thursday morning announced a definitive agreement under which it will sell 877 stores across the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market banners and related Osco and Sav-on in-store pharmacies to AB Acquisition, an affiliate of Cerberus Capital Management, in a transaction valued at $3.3 billion.

MINNEAPOLIS — In a move that will reunite all Albertsons stores under one operator, Supervalu on Thursday morning announced a definitive agreement under which it will sell 877 stores across the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market banners and related Osco and Sav-on in-store pharmacies to AB Acquisition, an affiliate of Cerberus Capital Management, in a transaction valued at $3.3 billion.

December 28, 2012
New England Compounding Center files for Chapter 11 bankruptcy protection

The filing seeks to establish a fund to compensate individuals and families affected by a nationwide meningitis outbreak.

FRAMINGHAM, Mass. — New England Compounding Center announced the company has filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code. The filing seeks to establish a fund to compensate individuals and families affected by a nationwide meningitis outbreak. In papers filed with the United States Bankruptcy Court for the District of Massachusetts, the company said its goal is to provide a greater, quicker, fairer payout to its creditors than could be achieved through piecemeal litigation.

December 20, 2012
Kodak sells digital imaging patents

Kodak is selling its digital imaging patents for $525 million, the bankrupt photography company said.

ROCHESTER, N.Y. — Kodak is selling its digital imaging patents for $525 million, the bankrupt photography company said.

The sale of the more than 1,100 patents, part of the company's restructuring efforts as it seeks to emerge from chapter 11 bankruptcy restructuring, involves the sale of the patents to a group of companies organized by Intellectual Ventures and RPX. According to published reports, companies buying the patents include Apple, Research In Motion and Google. Others include Adobe, Samsung, Fujifilm and China-based Huawei Technologies.

December 14, 2012
Reports: Kroger, Walmart looking to buy Hostess assets

Kroger and Walmart may be looking to buy up assets from bankrupt food company Hostess Brands, according to published reports.

NEW YORK — Kroger and Walmart may be looking to buy up assets from bankrupt food company Hostess Brands, according to published reports.

December 7, 2012
Play Beverages pulls out of bankruptcy court to protect Playboy Energy Drink license

Play Beverages on Friday announced that the U.S. Bankruptcy Court for the District of Utah has ruled in its favor and vacated its bankruptcy, freeing it to take legal actions to protect the product license granted for its Playboy Energy Drink.

SALT LAKE CITY — Play Beverages on Friday announced that the U.S. Bankruptcy Court for the District of Utah has ruled in its favor and vacated its bankruptcy, freeing it to take legal actions to protect the product license granted for its Playboy Energy Drink.

The judge’s ruling takes Play Beverages out of an involuntary bankruptcy, enabling it to continue its action in state courts against Playboy Enterprises and others to protect its license to produce and sell Playboy Energy Drink.

October 1, 2012
Kodak looks to re-emerge from bankruptcy

Kodak is hoping to extend its exclusive right to file a plan of reorganization.

ROCHESTER, N.Y. — Kodak is hoping to extend its exclusive right to file a plan of reorganization.

September 7, 2012
Supervalu takes a step toward turnaround with 60 store closures. Is it enough?

The journey to a complete turnaround begins with the first step. Supervalu's restructuring, refocusing and revitalizing the executive team may have been the first step, but it's been quickly followed by the second — culling out underperforming stores and re-investing those saved dollars into a refocused and revitalized business.

WHAT IT MEANS AND WHY IT'S IMPORTANT — The journey to a complete turnaround begins with the first step. Supervalu's restructuring, refocusing and revitalizing the executive team may have been the first step, but it's been quickly followed by the second — culling out underperforming stores and reinvesting those saved dollars into that refocused, revitalized business. The question, really, is this: Is 60 enough? Is closing out 60 underperforming or nonstrategic stores out of the company's total 2,400-plus store base (including Save-A-Lot), enough?

March 14, 2012
A&P emerges from Chapter 11

Grocer A&P has emerged from bankruptcy as a privately held company.

MONTVALE, N.J. — Grocer A&P has emerged from bankruptcy as a privately held company.

As previously announced, Mount Kellett Capital Management, The Yucaipa Cos. and investment funds managed by Goldman Sachs Asset Management, have provided $490 million in debt and equity financing to sponsor A&P’s reorganization plan and complete its balance sheet restructuring. In addition, JP Morgan and Credit Suisse arranged a $645 million exit financing facility.

January 19, 2012
Kodak officially files for Ch. 11

After weeks of speculation, Kodak and its U.S. subsidiaries officially filed voluntary petitions for Chapter 11 business reorganization.

ROCHESTER, N.Y. — After weeks of speculation, Kodak and its U.S. subsidiaries officially filed voluntary petitions for Chapter 11 business reorganization.

January 11, 2012
Hostess files for Chapter 11

The maker of Twinkies and Wonder Bread has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

NEW YORK — The maker of Twinkies and Wonder Bread has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

Irving, Texas-based Hostess Brands carried $860 million in debt and also faced high labor costs and rising prices for sugar and other ingredients that exceeded its annual sales of about $2.5 billion, according to published reports. Hostess previously filed for bankruptcy protection in 2004 and emerged in 2009.

January 10, 2012
A&P moves ahead with turnaround strategy as it closes more stores

Grocer A&P has announced plans to shutter 14 stores in four states as it prepares to emerge from bankruptcy.

MONTVALE, N.J. — Grocer A&P has announced plans to shutter 14 stores in four states as it prepares to emerge from bankruptcy.

The company has filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval to close the stores. The store closures are expected to be completed in the company's fiscal first quarter, subject to court approval.

January 10, 2012
Kodak announces new business structure

Kodak is looking to transform into a digital enterprise by going back to basics.

ROCHESTER, N.Y. — Kodak is looking to transform into a digital enterprise by going back to basics.

The company, which has been the subject of focus in the bankruptcy rumor mill, said it has implemented a new business structure that will increase productivity, reduce cost and allow it to deliver sustainable profitability and value to stakeholders. As part of the changes, Kodak has consolidated three units into two, which now are called the commercial segment and the consumer segment.

January 9, 2012
Kodak reiterates innovation despite expected bankruptcy announcement

Kodak has debuted its latest products, including two new cameras, at the 2012 Consumer Electronics Show in Las Vegas, despite rumors that the company will be seeking bankruptcy protection.

LAS VEGAS — Kodak is debuting its latest products, including two new cameras, at the 2012 Consumer Electronics Show in Las Vegas, despite rumors that the company will be seeking bankruptcy protection.

January 5, 2012
Report: Kodak to file for Chapter 11

Rumors are swirling that Kodak moments may be no more.

ROCHESTER, N.Y. — Rumors are swirling that Kodak moments may be no more.

According to published reports, the more-than-one-century-old company is looking to seek bankruptcy protection. The Wall Street Journal reported that could file for Chapter 11 bankruptcy this month or in early February and that Kodak was scrambling to sell some of its patents, though a Kodak spokesperson told the publication that "does not comment on market rumor or speculation."

December 5, 2011
A&P takes key step toward completing financial restructuring

Bankrupt grocer A&P has announced that the Locals of the United Food and Commercial Workers International Union have ratified modifications to the collective bargaining agreements with the company — a key step toward completing the company’s financial restructuring.

MONTVALE, N.J. — Bankrupt grocer A&P has announced that the Locals of the United Food and Commercial Workers International Union have ratified modifications to the collective bargaining agreements with the company — a key step toward completing the company’s financial restructuring.

November 4, 2011
A&P enters agreement to receive $490M to sponsor plan of reorganization

Bankrupt grocer A&P has entered into an agreement to receive $490 million of debt and equity financing from investors that will enable it to complete the restructuring of its balance sheet and emerge from Chapter 11 as a private entity in early 2012.

MONTVALE, N.J. — Bankrupt grocer A&P has entered into an agreement to receive $490 million of debt and equity financing from investors that will enable it to complete the restructuring of its balance sheet and emerge from Chapter 11 as a private entity in early 2012.

August 29, 2011
Nutrition 21 files for Chapter 11

Nutrition 21 on Friday announced that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code.

PURCHASE, N.Y. — Nutrition 21 on Friday announced that it has filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code.

The company does not have sufficient cash to meet a required redemption of its Series J 8% Convertible Preferred Stock on Sept. 11, 2011, for $17.8 million.

Nutrition 21 plans on selling all, or substantially all, of its assets. During the pendency of Nutrition 21's Chapter 11 proceedings, the company will remain in possession of its assets and will continue to operate its business.

June 6, 2011
A&P inks new deal with C&S Wholesale Grocers

Grocer A&P has entered into a new supply and logistics agreement with its principal wholesale supplier, C&S Wholesale Grocers, that is estimated to generate a run rate of more than $50 million in annual savings. The revised contract must be approved by the bankruptcy court.

MONTVALE, N.J. — Grocer A&P has entered into a new supply and logistics agreement with its principal wholesale supplier, C&S Wholesale Grocers, that is estimated to generate a run rate of more than $50 million in annual savings. The revised contract must be approved by the bankruptcy court.

April 29, 2011
Bashas' looks to expand employee base

Despite its long history of troubles, things appear to be looking up for regional supermarket chain Bashas’.

CHANDLER, Ariz. — Despite its long history of troubles, things appear to be looking up for regional supermarket chain Bashas’.

Bashas’, which operates more than 130 stores in Arizona, California and New Mexico under the Bashas’, Food City and AJ’s Fine Foods banners, announced plans Thursday for job fairs in Arizona — including in Phoenix, West Phoenix, Mesa and Tucson — where it will hire 400 new employees.

Bashas' spokeswoman Kristy Neid told Drug Store News that sales and customer counts lately had been increasing.

February 4, 2011
Greg Rayburn joins A&P's board

Bankrupt grocer A&P has announced the election of Greg Rayburn to its board of directors, replacing Dr. Jens-Jürgen Böckel, who has resigned from the board.

MONTVALE, N.J. — Bankrupt grocer A&P has announced the election of Greg Rayburn to its board of directors, replacing Dr. Jens-Jürgen Böckel, who has resigned from the board.

January 17, 2011
Family Dollar names SVP apparel, home and seasonal

Family Dollar Stores announced that it has named Paul White to the position of SVP apparel, home and seasonal. White will report to Dorlisa Flur, EVP and chief merchandising officer.

MATTHEWS, N.C. — Family Dollar Stores announced that it has named Paul White to the position of SVP apparel, home and seasonal. White will report to Dorlisa Flur, EVP and chief merchandising officer.

December 14, 2010
Court accepts A&P's DIP facility

Bankrupt grocer A&P has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the $800 million debtor-in-possession financing provided by JPMorgan Chase. Of the total DIP facility, a $350 million term loan immediately has been made available.

MONTVALE, N.J. — Bankrupt grocer A&P has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the $800 million debtor-in-possession financing provided by JPMorgan Chase. Of the total DIP facility, a $350 million term loan immediately has been made available.

As previously reported, A&P filed for bankruptcy on Sunday and will keep its 395 stores open and operational during the proceedings.

In addition, the court granted A&P's motion to approve its request for "first day orders," including:

December 13, 2010
A&P files for Ch. 11 bankruptcy

Battling hefty debt and intense competition, grocer A&P filed for bankruptcy on Sunday and has secured $800 million in debtor-in-possession financing to keep the 395-store chain open and operational during the proceedings.

MONTVALE, N.J. — Battling hefty debt and intense competition, grocer A&P filed for bankruptcy on Sunday and has secured $800 million in debtor-in-possession financing to keep the 395-store chain open and operational during the proceedings.