Health and wellness retailer NewAge files for bankruptcy in Delaware

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Aug 30 (Reuters) – NewAge Inc (NBEV.O), a direct seller of health and wellness products, filed for bankruptcy on Tuesday and announced plans to sell, after revealing significant weaknesses in its reports financial.

The Midvale, Utah-based company and three affiliates filed for Chapter 11 creditor protection in the U.S. bankruptcy court in Delaware.

Tuesday’s filing came three weeks after the company received notice of default on a loan agreement.

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NewAge said it had $310.9 million in assets and $149.4 million in debt at the end of 2021.

In a regulatory filing, NewAge said it received a $28 million offer from an entity known as DIP Financing LLC to buy substantially all of its assets, subject to court approval and higher offers.

NewAge also said it secured $16 million in funding to help it operate during its restructuring.

The company did not file annual or quarterly reports this year, after finding a material weakness in its 2020 annual report regarding how it reported acquisitions.

In March, NewAge corrected disclosures about its sale of CBD (cannabidiol) drinks, saying some had been made in its name without permission, and a former chief executive knew its direct-to-store distribution division was selling the drinks. .

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Reporting by Jonathan Stempel in New York; Editing by Mark Porter and Josie Kao

Our standards: The Thomson Reuters Trust Principles.

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