The Company

Prime Choice Foods, Inc.

Family owned and operated manufacturer of snack food items, specifically corn and specialty tortilla chips.

The Challenge

Prime Choice Foods had lost of several key customers over a short period of time. The Company was forced to shut down operations in one facility and was having difficulty supporting the overhead of the remaining 2 facilities and accompanying debt. They were forced to file for bankruptcy protection and were operating in Chapter 11 for 4 months when Equity Partners was retained.

The Process

The secured creditor agreed to extend the use of cash collateral while Equity Partners searched for a buyer. After an exhaustive marketing process that identified multiple going concern bidders, an auction was scheduled among 10 qualified groups.

The Solution

After 34 rounds of bidding and a 40% increase to the opening bid, the highest and best offer was selected and closing occurred 30 days later. Operations continued without a single day of interruption for customers or employees.