19-year-old grocery brand partner files Chapter 11 bankruptcy

Most people, myself included, don't truly deliberation astir who makes the packaged goods connected their market store shelves.

The biggest companies mostly person their ain factories, but that's a comparatively tiny portion of the industry. In different cases, brands usage what's called a co-packer.

That's a word I learned watching "Shark Tank," wherever galore entrepreneurs larn they can't efficiently bash everything themselves. Instead, they bring their look to a spouse who specializes successful making things.

Kevin O'Leary erstwhile adjacent made an connection to a contestant, Nowhere Bakery, contingent connected it utilizing a co-packer.

“I privation to enactment it successful large grocers astir the brand,” helium said, CNBC reported. “I’ll springiness you $200,000 for 20% … I’m going to bring the co-packer I privation successful caput that I deliberation you’re going to like, and I’m going to springiness him fractional of my equity.”

Co-packers usually run nether nondisclosure agreements — they can't speech astir the products they nutrient — but erstwhile a large subordinate successful the abstraction files for Chapter 11 bankruptcy, it has a ripple effect.

"Creative Foods LLC, a Baltimore, OH-based commercialized bakery merchandise manufacturer, filed for Chapter 11 extortion connected January 14, 2026, successful the Southern District of Ohio. The company, which operates arsenic a privately held entity, filed nether Subchapter V to facilitate a restructuring of its indebtedness obligations portion maintaining its presumption arsenic a determination supplier and backstage statement partner," RK Consultants reported.

Documents filed connected PacerMonitor verified the Chapter 11 bankruptcy filing.

The institution operates 2 superior manufacturing facilities, including a 75,803-square-foot works successful Osceola, AR, and its office successful Baltimore, OH.

"Creative Foods specializes successful the accumulation of margarine, spreads, and perishable prepared foods for assorted nutrient retailers and distributors. Led by CEO Bob Berger, the shaper precocious invested successful home instrumentality to trim its reliance connected planetary earthy worldly suppliers and automate accumulation lines," RK Consultants added.

The company's Chapter 11 filing was a nonstop effect of caller concern issues.

"The filing follows a liquidity situation triggered by the nonaccomplishment of a declaration manufacturing spouse that accounted for 50% of the company's yearly revenue," according to RK Consultants.

Management cited important macroeconomic headwinds, including a 45% to 55% surge successful input costs from European suppliers pursuing the 2022 penetration of Ukraine and sustained labour shortages.

The institution intends to prosecute a Section 363 merchantability of its assets to sphere the concern arsenic a going concern.