Hearthside Food Solutions emerged from bankruptcy reorganization today (March 31) with a new name, Maker’s Pride LLC, $2 billion of eliminated debt and an infusion of new capital.
Technically it was H-Food Holdings LLC and its affiliates that completed the financial restructuring. Whatever the name, this was the country’s largest contract manufacturer, and it’s still headquartered in Downers Grove, Ill. The company’s plan of reorganization was approved on March 11.
“With a stronger financial foundation and streamlined operations, Maker’s Pride is well-positioned for its next phase of growth, innovation, and leadership in the food manufacturing industry,” said today’s announcement.
Hearthside entered voluntary Chapter 11 reorganization last November. Other than financial restructuring, today's announcement didn't indicate any changes in the business plan. Hearthside makes baked, refrigerated and frozen foods, sweet and salty snacks and nutrition bars under contract for leading brand owners such as Mondelez and General Mills.
“With a healthy balance sheet and additional capital to achieve our goals, we are well-equipped to continue serving our customers with excellence,” said Darlene Nicosia, who took over as CEO in August 2022 after 29 years at Coca-Cola Co., last as president of Coca-Cola’s Canada & Northeast U.S. Zone. She earlier worked at Kraft and PepsiCo.
She said the new name “conveys craftsmanship and authenticity, reflecting the personal pride we have in our products and our unwavering commitment to quality and safety.”
Through its financial restructuring, the company eliminated approximately $2 billion of funded debt, substantially reducing interest expense and positioning the business for growth. Maker’s Pride emerges with approximately $600 million of liquidity, including $200 million of new money through an Equity Rights Offering and approximately $190 million of additional capital from a new asset backed loan facility.
The company is now majority-owned by a group of its existing lenders, including funds managed by Apollo and Oaktree Capital Management.
Chairman is Brian Driscoll, who is a familiar name among distressed companies. He became CEO of Diamond Foods, Hostess and Snyder’s-Lance after financial distress at each, readying them for their final disposition. None of them still exists.
