Bumble Bee Foods, the US manufacturer of preserved fish and chicken products, has filed for bankruptcy and agreed a deal to sell its assets to Taiwanese seafood processor FCF, according to a Food Business News report.
FCF will pay reportedly $925 million for Bumble Bee Foods’ assets. The declaration of bankruptcy will facilitate the sale and help Bumble Bee reduce its debt burden, the US company is quoted as saying.
Commenting on the decision, Bumble Bee president and CEO Jan Tharp said: “It’s been a challenging time for our company, but today’s actions allow us to move forward with minimal disruption to our day-to-day operations. We have an experienced leadership team in place and plan to transform our business in bold and innovative ways that will build a legacy worthy of our proud 120-year-old history”.
Food Business News reports that much of the company’s debt burden stems from legal trouble relating to a federal price fixing case, which has seen Bumble Bee Foods become the target of class action lawsuits from retailers, distributors and consumers.
Source: Food Business News