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Bumble Bee files for bankruptcy

Popular tuna maker Bumble Bee Foods has filed for bankruptcy.

Bumble Bee will sell its assets to FCF Fishery for US$925 million. (Photo: cnbc.com)

Bumble Bee made the announcement yesterday, saying it began chapter 11 proceedings to reduce debt burden caused by “recent and significant legal challenges”. It continued that it had entered into an agreement with FCF Fishery to purchase its assets for US$925 million. Additionally, existing lenders have provided commitments which will provide liquidity to keep it going until the sale is finalised.

Bumble Bee’s president and chief executive officer, 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.”

“Employees will get paid, our customer partners can count on us to continue delivering outstanding brands and services, and vendors will be paid in the ordinary course of business.”

– Bumble Bee’s president and chief executive officer, Jan Tharp

Bumble Bee was fined US$25 million after pleading guilty to price-fixing charges two years ago. What’s more, the company has pending civil suits also related to price-fixing.

Despite the filing, the company says its North American operations in the United States and Canada will continue uninterrupted.

Tharp said the deal with FCF FIshery should be completed in 60 to 90 days.
(Photo: Fortune.come)

“Employees will get paid, our customer partners can count on us to continue delivering outstanding brands and services, and vendors will be paid in the ordinary course of business,” Tharp said.

Tharp said she expects the buyout to be completed within three months.