US: Javo Beverage files for bankruptcy
Javo Beverage Co has filed for Chapter 11 bankruptcy protection but said operations will continue as normal.
In a statement yesterday (24 January), the coffee and tea-based beverage firm said it has reached an agreement with its largest investor, Coffee Holdings, to co-sponsor a reorganisation plan. The plan, which will be filed by 7 February, aims to "significantly reduce" the company's debt and provide working capital, the US-based company said.
Coffee Holdings will provide Javo with financing of up to US$3.2m, allowing the company to continue its operations.
"This is an unfortunate but necessary means of right-sizing our balance sheet and capitalisation so that our underlying business can thrive," said Javo's CEO, Stan Greanias. "We want to assure all of the customers, suppliers and business partners who have supported us to this point that we intend to continue to supply quality products and, in general, operate the business in a normal fashion during the bankruptcy proceedings."
In November, Javo narrowed its net losses in the third quarter of the year and announced that it had appointed an independent financial advisory firm.
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