Hearthside Food Solutions, one of Michigan City's largest employers, is reorganizing in bankruptcy court.
The Downers Grove-based company filed for Chapter 11 bankruptcy in United States Bankruptcy Court for the Southern District of Texas. It's looking to stay open and reorganize its debt to whip its balance sheet back into shape.
Hearthside Food Solutions makes crackers at its plant at 502 W U.S. 20 in Michigan City. The Economic Development Corp. Michigan City estimates it employs 400 workers there, making it one of Michigan City's largest employers.
A Hearthside spokesperson said the Michigan City bakery will remain open.
The company is looking to eliminate more than $1.9 billion in debt and secure $200 million in new equity capital in order to position it for long-term growth. CEO Darlene Nicosia said bankruptcy was an important step to transform the business for the future.
“With a sustainable capital structure and a significant infusion of new capital to fund our long-term plan, we will be well-equipped to enhance our leadership in the food manufacturing industry as we drive continued innovation and growth. 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," she said.
In 2021, Hearthside Food Solutions did a $14 million expansion that created 50 new jobs at its Michigan City plant. It's a contract manufacturer that makes savory, cheese, sandwich, unleavened and gluten-free crackers for leading brands.
The company lined up $300 million in debtor-in-possession funding to make it through the bankruptcy process. It hopes to emerge from bankruptcy court in the next few months.
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