A massive distributor for Walmart, Kroger, and other big grocery chains has now filed for Chapter 11 bankruptcy.
“Aside from Dole and Chiquita, the fruit industry does not have a lot of big brand names that consumers know.
Prima Wawona, which is based in California, supplies major grocery chains all around the country with stone fruits including peaches, plums, nectarines, and apricots,” reports TheStreet.
“It’s a major brand that does label its products with the “Wawona” name, but the company markets its products to its vendors, not to consumers.”
The company has filed Chapter 11 bankruptcy with plans to either sell the company to existing debtors or a third-party filing, per reports.
The company said in its bankruptcy filing that it plans to continue its regular shipments to all of its retail partners.
In the filing, the company said that it plans to transition ownership of the company and recapitalize the business.
“In connection with an agreement reached amongst the company’s lenders, Prima Wawona is proceeding with a transaction that will involve either the conversion of existing lender debt into equity ownership of the business or allow for a sale transaction to a third-party buyer via an expedited auction process,” the company shared.
The company’s lenders have agreed to allow it to fund its business during the transition period.
“In addition, Prima Wawona has said it intends to keep paying its vendors and suppliers under its normal terms.
If a third party emerges that will pay more than the value of the current debt, that company could end up owning the company. Any transaction will require the approval of the bankruptcy court,” says Daniel Kline.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
Bank of America is now closing 20 branches following Wells Fargo and Chase as online banking forces the bank giants to pivot.
“A STRING of major US banks have announced dozens of branch closures across the country in the last few days.
Bank of America is set to close 21 in-person locations around the US in the coming months,” reports The-Sun.
“The financial chain announced 20 of the closures on October 5th, according to a report from the Office of the Comptroller of the Currency (OCC).
California is the state that has been worst affected by this series of bank closures, with nine locations set to shut.”
A spokesperson for the Bank of America said: “The pandemic significantly accelerated banking behaviors toward digital self-service platforms instead of traditional foot-traffic banking.
“For example, 90percent of our clients now interact with us digitally – including nine out of every 10 checks are deposited outside the walls of a branch via mobile deposit and at ATMs.”
Connecticut and New York will lose three locations each.
Locations in Cos Cob, Norwalk, and Hartford will disappear from Connecticut while branches in West Hempstead, Port Washington, and Baldwin will depart New York State.
Pennsylvania will lose a branch in Philadelphia and Morrisville.
The south will also miss out on more physical locations as Florida will wave farewell to its branch on St. Pete Beach and Texas will no longer have one of its Austin spots.
The banking giant will also lose out on a location in Redmond, Oregon, and Spotswood, New Jersey.
The Reedly branch will close after the building’s lease expires in August 2024, according to The Business Journal.
Also Read: Bank of America is Freezing Accounts in New Scandal
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