SAN DIEGO _ Bumble Bee Foods has agreed to sell its assets to Taiwan-baseed FCF Co. Ltd. for $925 million, a move sparked by significant legal challenges faced by the company.
Bumble Bee, one of North America's largest branded seafood companies, filed for Chapter 11 bankruptcy reorganization Thursday to help pave the way for the proposed sale.
"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," said Jan Tharp, president and chief executive officer for Bumble Bee, in a statement. "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."
Bumble Bee has been mired in legal challenges related to price-fixing allegations. In 2017, the company
plead guilty to conspiracy to fix the prices of tuna fish from as early as 2011 through at least as late as the the end of 2013, according to the U.S. Department of Justice.
Former Chief Executive Christopher Lischewski pleaded not guilty last year to criminal charges related to the price-fixing investigation. His trial is underway in California federal court.
Starkist also pleaded guilty to the price-fixing charges in 2018, according to Bloomberg News. Chicken of the Sea received conditional leniency from the U.S. Department of Justice for in the investigation.
Bumble Bee said it has received new financing commitments from its existing lenders that will provide sufficient liquidity to fund the business through the closing of the sale.
Bumble Bee filed for bankruptcy in Delaware. It intends to submit bid procedures and sale motion, along with the purchase agreement, with the court soon.
FCF will serve as a "stalking horse" purchaser for the sale process, the company said. Its bid will be the baseline for a court-supervised auction process aimed at getting the highest offer for the company's business.
It is unclear whether other bidders would be interested in Bumble Bee, however.
Bumble Bee's Canadian affiliate, Connors Bros. Clover Leaf Seafoods Co., will also seek to reorganize under Canadian insolvency law, the company said in the statement.
Tharp said she anticipates that the transaction will occur over the next two to three months.
"It is our clear intent that all U.S. and Canadian operations continue uninterrupted," said Tharp in a statement. "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 sells seafood products under the Bumble Bee, Brunswick, Snow's, Wild Selections and Beach Cliff brands.
.png?w=600)
