Courtesy / Sure Winner Foods
Keith Benoit is CEO of Sure Winner Foods
May 7, 2019
Sure Winner Foods files petition for Chapter 11 bankruptcy relief
By Staff
Sure Winner Foods, headquartered in Saco, announced today it has filed a petition for Chapter 11 protection in U.S. Bankruptcy Court in Portland.
Sure Winner has reached an agreement with KeyBank for continued financing that will ensure business as usual and provide all necessary working capital, according to a company news release. Chapter 11 is designed to provide companies with the time to reorganize their finances.
The company characterized its financial performance and cash flow as “strong” and said it will “continue to operate, fill orders and pay all suppliers and employees on a timely basis as the company reorganizes.”
“The filing for reorganization was necessitated by unilateral acts by a major supplier to the company, which we strongly believe breaches our contract with the supplier,” said Keith Benoit, Sure Winner’s CEO.
He did not name the supplier.
“Because of the potential for those acts to be value-destructive and to harm our company and all of its stakeholders — including our other vendors, customers and over 250 valued employees — we had no choice but to take this step. We will seek appropriate action by the court and expect to exit Chapter 11 as strong, if not stronger, than we were before this necessary action," Benoit added.
Sure Winner expects to reorganize quickly and to pay all its creditors in full, according to the news release. “But for the inexplicable action of our supplier, Sure Winner is solvent and profitable, and has been for some time. We will do everything we can to prevent one counter-party from putting the company into jeopardy,” said Benoit.
Sure Winner is one of the largest frozen food distributors in the Northeast. Originally founded in 1979 to deliver ice cream in northern Maine, the company has grown into a leading distributor of frozen food, ice cream and novelties, offering 2,000 items from over 40 manufacturers.
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Anonymous
May 8, 2019
Nestle is transitioning away from a Direct Store Delivery (DSD) model in favor of warehouses. This cuts Sure Winner Foods out of the picture.
https://www.theshelbyreport.com/2019/05/08/nestle-to-close-six-dcs-transition-to-warehouse-model/
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