Fresh Produce has announced the sale of its assets to Blue Stripe.
Fresh Produce filed for Chapter 11 bankruptcy protection on April 4. Now, with the approval from the U.S. Court, Blue Stripe—which includes the original founders of Fresh Produce and a group of brand enthusiasts—officially assumed ownership.
While cutting the underperforming stores, the brand will continue to sell via wholesale and online. In addition, 15 retail brick-and-mortar locations will continue to operate throughout the country.
"On behalf of all of us here at Fresh Produce, I want to say thank you to our employees, our customers, our wholesale accounts, and our vendors for their patience and support over the last few months," said Founder Mary Ellen Vernon. "We are very pleased to have been able to orchestrate a transaction for the company that will allow Fresh Produce to continue operations and to carry on our promise to add color to the lives of women everywhere."
As part of the deal, Tiger Capital Group acquired the assets of 12 underperforming stores that will liquidate over the next 60 days. The equity provided by Tiger enabled the investment team to acquire Fresh Produce's best assets and position them for the future.
Although it seems like Fresh Produce is down, it is certainly not out and will continue to operate. The retailer's story is similar to that of RadioShack (NYSE:RSH), whose brand was recently sold off to Standard General, saving more than 1,700 stores from liquidation, following a bankruptcy filing earlier this year.
-See this Fresh Produce press release
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