DOWNERS GROVE, ILL. — H-Food Holdings LLC, the parent company of contract manufacturer Hearthside Food Solutions, on Nov. 25 received final approval on all its “first day” motions from the US Bankruptcy Court for the Southern District of Texas. The approval was in connection with H-Food Holdings filing for Chapter 11 bankruptcy protection.

The court on Nov. 25 granted interim approval for the company to access cash collateral, which will provide liquidity to support operations during the Chapter 11 process. The court also granted interim relief to allow the company to continue operating in the ordinary course of business for its key stakeholders, which includes maintaining its customer programs, paying vendors for goods and services on a post-petition basis, and continuing to pay employee wages and benefits as usual.

“With strong support from our key financial partners and other important stakeholders, we look forward to moving through this process swiftly and positioning Hearthside for significant long-term growth,” said Darlene Nicosia, chief executive officer of Hearthside. “With the significant court approvals received yesterday, we move forward well-equipped to operate in a business-as-usual manner during our cases as we continue delivering the best-in-class products and services our customers expect.”

In a “second day” hearing scheduled for Dec. 18, H-Food Holdings expects to seek approval of a $150 million new money debtor-in-possession financing facility to further support ongoing operations and final approval of the interim orders entered by the court.

The company expects to emerge from Chapter 11 in the first quarter of 2025. The bankruptcy will allow H-Food Holdings to eliminate more than $1.9 billion of its debt and secure $200 million of new capital at the bankruptcy exit, according to the company.

Hearthside Food Solutions began in 2009 with four manufacturing locations in Grand Rapids, Mich. Acquisitions that followed included Consolidated Biscuit Co. and Golden Temple in 2010, Oak State Products in 2016, Standard Functional Foods Group Inc. in 2017 and Greencore USA in 2018. Hearthside makes items such as granola products, nutrition bars, snack bars, cookies and crackers as well as packaging items like cups, bowls and sachets.