"We have taken this deliberate step to provide BHPO with the financial framework needed to address our balance sheet, preserve our operations, and position this business for long-term success," said Daniel Gebbers, CEO of BHPO. "Our orchards are producing. Our packing operations are running. Our teams are in the field. Every customer order, every grower relationship and every employee commitment continues exactly as before. This is not the end of BHPO — it is the beginning of a stronger chapter."

The company has secured debtor-in-possession financing sufficient to continue to fund all operational needs. This financing, which is subject to court approval, covers payroll and employee benefits, orchard operations, packing and storage activities, logistics and transportation, grower program support, procurement of operational inputs and all other ordinary-course business activities. The DIP facility was arranged prior to the filing and reflects the organized and purposeful nature of the restructuring process.

The company has entered into a letter of intent with Legendary Fruit, a portfolio company of International Farming, as its stalking horse partner, subject to definitive documentation and court approval. International Farming is an institutional asset manager and farms over 7,000 acres of apples, cherries and pears in Washington state. 

Legendary Fruit operates three packing facilities, including two within BHPO’s region, and has worked closely with the company for years. This partnership, coupled with the DIP funding, will ensure operations continue as normal through the restructuring process. 

The letter of intent reflects substantial strategic interest in BHPO's operations, assets, brands, orchards, proprietary apple varieties, storage infrastructure and long-standing customer and grower relationships. BHPO said it is excited to have the confidence and support of an institutional partner and is looking forward to its next phase. The company will conduct a competitive, court-supervised marketing process to identify additional interested parties, with the goal of maximizing value for all stakeholders and coming out of the situation stronger.

BHPO has filed customary first-day motions seeking immediate court authorization to continue employee payroll and benefits, grower programs, customer programs and other ordinary-course operations. The company has retained Katten Muchin Rosenman LLP and Bush Kornfeld LLP as restructuring counsel, VeroPeak LLC as financial advisor and Capstone Capital Markets LLC as its investment banker.

Stakeholders with questions may contact our dedicated information desk at [email protected] or 855/994-1862. Additional information will be posted at cases.stretto.com/BrewsterHeights.