Market Overview

Canned Tuna Maker Bumble Bee Foods Declares Bankruptcy

Share:
Canned Tuna Maker Bumble Bee Foods Declares Bankruptcy

Canned tuna maker Bumble Bee Foods declared bankruptcy and quickly reached an agreement to sell its assets.

Bumble Bee filed for Chapter 11 bankruptcy protection and reached an agreement to sell its assets to its largest creditor, Taiwan-based FCF Fishery, for $925 million, according to CNBC.

Bumble Bee is owned by a London-based private equity firm called Lion Capital, who bought the food company for $980 million in 2010.

What Happened To Bumble Bee Tuna

The tuna company's past few years has been riddled with legal woes, including a 2017 guilty plea for price-fixing. Bumble Bee paid $25 million in fees for starting a cartel with rivals Chicken of the Sea and Starkist.

The company also confidentially settled lawsuits with food distributors Sysco Corporation (NYSE: SYY) and US Foods Holding Corp (NYSE: USFD), CNBC noted. In addition, Bumble Fee Foods still owes the U.S. Department of Justice $17 million and faces ongoing civil lawsuits.

Bumble Bee did face a declining market as consumption of canned tuna fell from 42% per capita over a 30-year period ended 2016.

Canned tuna fans will be able to continue buying Bumble Bee's products as the bankruptcy proceedings isn't expected to impact its U.S. and Canadian operations, according to CNBC.

Related Links:

How General Mills Tried To Make Its Food A Little Healthier For You

How Walmart Is Changing The Produce Shopping Experience

Photo credit: KeenReport

Posted-In: bankruptcy Bumble Bee Foods Bumble Bee Tuna CNBC foodNews Legal Media Best of Benzinga

 

Related Articles (SYY + USFD)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

New Mexico's Medical Cannabis Advisory Board Receives Petition To Include Dogs With Epilepsy

Cummins Moves Some Production To Mexico Ahead Of USMCA Rule Changes