Ascendia files for bankruptcy protection

C&T product manufacturer Ascendia Brands Inc today announced that it has filed a voluntary petition for reorganisation under Chapter 11 of the US Bankruptcy Code and that it is now seeking a buyer for the business.

Ascendia’s decision to file for Chapter 11 bankruptcy protection has been prompted by financial pressures from tightening credit markets and strain on material flows, combined with the liquidity impact associated with its The Healing Garden brand relaunch.

Ascendia has appointed financial advisor Douglas Booth as chief restructuring officer, following Steven Scheyer’s resignation from the posts of president and ceo.

The company has entered into an agreement with senior secured lenders to provide a debtor-in-possession financing facility. Discussions with prospective buyers are underway and Ascendia expects to complete a sale before the end of September. Operations will continue as normal pending a sale. However, it is not likely that a sale will result in any recovery to common stockholders.

Booth commented: “There is significant potential at Ascendia and we believe that, with a new ownership dedicated to the consumer product segment in which Ascendia is a market presence, the business can effectively move forward and grow its core brands.” He continued, thanking Ascendia employees and Scheyer in particular for their efforts on the company’s behalf.