Rupari Food Services, a South Holland, Ill.-based producer of branded and private label restaurant-quality barbequed meats, including Tony Roma's and Butcher's Prime retail brands, reached a definitive agreement to sell to a wholly owned subsidiary of Carl Buddig and Co., South Holland, Ill.
The sale of the company is a natural next step for Rupari Food Services, who had been seeking a partner to invest behind the next phase of growth for its portfolio of premium quality barbecue products.
To facilitate the transaction, Rupari Food Services and its parent company, Rupari Holding Corp., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Earlier in 2016, Rupari Food Services relaunched its Tony Roma's brand of BBQ products, and looks forward to benefits of new ownership.
"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," says Jack Kelly, Rupari's chief executive officer. "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."
"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," says Bob Buddig, chief executive officer of Carl Buddig. "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."
"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 adds.
Employees and customers should not notice any difference in operations as a result of the filing or during the sale process.
"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,” Kelly adds. “Our employees will continue to be paid as usual during this transaction. This transaction represents good news for our employees, our customers and our other constituents. It will provide Rupari with greater access to the financial resources necessary to continue to prosper and grow. By utilizing the Chapter 11 process, we are able to ensure an expedited and orderly transition.”