SOUTH HOLLAND, Ill. – A wholly owned subsidiary of Carl Buddig and Co. has reached an agreement to purchase all assets of Rupari Food Services, producer of branded and private label restaurant-quality barbecued meats, including Tony Roma’s and Butcher’s Prime retail brands. To facilitate the transaction, on April 10, Rupari Food Services and its parent company, Rupari Holding Corp., filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in Wilmington, Delaware.
Other companies will have an opportunity to submit competing offers for the assets under Section 363 of the US Bankruptcy Code. Rupari expects the sale will be completed within 90 days.
A relaunch of Rupari’s Tony Roma’s brand of retail barbecue products earlier in 2016 helped stimulate the company’s brand growth. However, it wasn’t enough to bolster the company’s performance. Officials worked to improve its bottom line results by reducing costs, capital expenditures and working capital needs.
“Acquiring the assets of Rupari makes good business sense for Buddig as we expand our portfolio of fresh, great tasting and affordable meats. It gives us immediate access to an attractive pre-cooked BBQ segment and allows us to strategically grow our nationwide footprint,” said Bob Buddig, CEO of Homewood, Illinois-based Carl Buddig and Co.
“We have worked diligently to overcome our capital structure issues, along with legacy legal issues the company has been struggling with for the past few years. We are very pleased with our progress from an operational efficiency standpoint, however, the company still faces liquidity issues,” said Rupari CEO Jack Kelly. “After careful review of a wide range of available options, management and the board of directors determined that a sale of the company is in the best interests of all constituents, including our valued customers and employees.”
Rupari anticipates being able to maintain normal operations during the Chapter 11 process – employees and customers shouldn’t notice any changes in operation. “During the sale process we will have sufficient financial resources to purchase the goods and services necessary to meet our customers’ needs and continue the high-quality service and support our customers have come to expect from the Rupari team,” Kelly said. “Daily operations will continue as usual, production hours will remain the same and all aspects of the business will go on as before the Chapter 11 filing. Our employees will continue to be paid as usual during this transaction.”
Buddig added, “We are also excited to welcome an experienced and dedicated team of employees to the Buddig family and we are confident that the team will continue to provide the highest levels of service to their customers.”