Rupari Food Services, a leading producer of branded and private label restaurant-quality barbequed meats, including Tony Roma's and Butcher's Prime retail brands, announced that it has reached a definitive agreement for the sale of substantially all of its assets to a wholly owned subsidiary of Carl Buddig and Company.
The sale of the company is a natural next step for Rupari Food Services, who had been seeking a partner to invest behind the next phase of growth for its portfolio of premium quality barbecue products.
To facilitate the transaction, Rupari Food Services and its parent, Rupari Holding Corp., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Del. In accordance with Section 363 of the U.S. Bankruptcy Code, other companies will have an opportunity to submit competing offers for the assets. The company expects the sale to be completed within 60 to 90 days.
Earlier in 2016, Rupari Food Services successfully relaunched its Tony Roma's brand of BBQ products that stimulate category and brand growth. While market acceptance of the innovation has been strong, legacy financial and structural burdens hindered total company performance. Rupari has taken significant steps toward financial health by reducing costs, capital expenditures and working capital needs, and looks forward to benefits of new ownership.
"We have worked diligently to overcome our capital structure issues, along with legacy legal issues the Company has been struggling with for the past few years. We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues," said Rupari's Chief Executive Officer Jack Kelly. "After careful review of a wide range of available options, management and the Board of Directors determined that a sale of the Company is in the best interests of all constituents, including our valued customers and employees."
"Acquiring the assets of Rupari makes good business sense for Buddig as we expand our portfolio of fresh, great tasting, and affordable meats. It gives us immediate access to an attractive pre-cooked BBQ segment and allows us to strategically grow our nationwide footprint," said Bob Buddig, CEO of Carl Buddig and Company. "We are also excited to welcome an experienced and dedicated team of employees to the Buddig family and we are confident that the team will continue to provide the highest levels of service to their customers."
Rupari has sufficient cash on hand to maintain normal operations during the Chapter 11 process. "During the sale process we will have sufficient financial resources to purchase the goods and services necessary to meet our customers' needs and continue the high-quality service and support our customers have come to expect from the Rupari team," Kelly said.
Kelly also emphasized that employees and customers should not notice any difference in operations as a result of the filing or during the sale process. "Daily operations will continue as usual, production hours will remain the same and all aspects of the business will go on as before the Chapter 11 filing. Our employees will continue to be paid as usual during this transaction," he said.
"This transaction represents good news for our employees, our customers, and our other constituents. It will provide Rupari with greater access to the financial resources necessary to continue to prosper and grow. By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly transition," Mr. Kelly concluded.
Rupari filed its voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
Source: Rupari Foods