Illinois-based Hearthside Food Solutions, which has four production locations in Kent County, filed for Chapter 11 bankruptcy on Friday in the U.S. Bankruptcy Court for the Southern District of Texas, according to court documents.
In a release, the manufacturer announced it was entering into a restructuring support agreement expected to eliminate more than $1.9 billion in debt.
The release also states that the company expects a smooth transition into Chapter 11 and to operate without disruption during the process, continuing to pay employee wages and benefits.
In a statement, CEO Darlene Nicosia said, “We have taken decisive action across our company to put our past challenges behind us and are encouraged by the improvement we have already seen in our employee engagement, organizational culture, and ability to deliver best-in-class, quality products and services that our customers can depend on.”
Hearthside expects to emerge from Chapter 11 in the first quarter of 2025.
