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TN newcomer Pure Foods filing for bankruptcy

Debt and an inability to pay debts, or manage finances, can happen to even the largest businesses. One newcomer to Tennessee, Pure Foods, recently opened a new factory and Tennessee location in hopes of launching their corporate headquarters in the U.S. as opposed to Canada. The health food manufacturer was backed by Tennessee Governor Bill Haslam and other state dignitaries, when they opened their $22 million complex in Tennessee last year. Despite their well-supported launch into the marketplace, they are filing for bankruptcy.

Last October, the company had to halt production, which must have played a role in their recent bankruptcy filing. Their brand new facility was promised to bring 275 new jobs to the area when they opened last year. Unfortunately, the company was never really able to get up off the ground. According to the CEO, they are looking for a prospective buyer to operate the facility at this time, as part of their bankruptcy filing.

Court records indicate that the new company has over $1 million in liabilities. It owes more than 100 creditors including the city of Kingsport, among many others.

This story shows that it is easy to slide into debt, even for a professionally managed company with all of the support in the world. Things can go wrong, which set off a financial chain-reaction.

While most people do not have millions of dollars in assets or liabilities, they do understand how it feels to be in a tight place financially. There are many debt reorganization options, it just depends what financial goals one would like to accomplish. For Pure Foods, management has decided on Chapter 11 due to the company's financial challenges.

Source: wcyb.com, "Court Filings: Pure Foods in Kingsport goes Bankrupt," Kevin Castle, Feb. 7, 2017

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Kenneth C. Rannick, P.C.
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