Bravo Brands is poised to file for bankruptcy, citing the failure of its tie-up with Coca-Cola Enterprises.

The company, which produces flavoured milk drinks and smoothies in the US, said earlier this week that it has insufficient funds to pay for accounting consultants to prepare and file its results for the period to the end of June.

"The company lacks sufficient sales or fully committed third party funding to continue as an ongoing business," Bravo said in a filing with the Securities and Exchange Commission. The company blamed "sustained operational losses" from a distribution agreement with CCE. The agreement, which dates back to August 2005, was terminated last month, with returns falling "far below expectations", the two sides agreed.

"Since the company's reporting of its financial results for the year ended December 31, 2006, the drop in the company's market capitalisation has inhibited its ability to raise sufficient funds to continue with the burden of its liabilities and cash burn while attempting to increase sales," Bravo noted this week.

The company is looking for a third party "stalking horse" in connection with filing for bankruptcy. Should a stalking horse fail to appear, then the company said it would file for liquidation.

In June, Bravo said it was retaining investment bank Gordian Group to provide financial advisory services that may include the sale of the business.