Lancaster’s parent company, Meritt, has filed voluntary petition for Chapter 11 reorganization. As is the case with many of such petitions, when they are undertaken voluntarily by firms which have strong fundamental business metrics, the companies emerge with renewed vigor.
Key points for us:
- Winning Brands is not owed any money
- The distributor is continuing to work normally as the financial engineers carry out their adjustments in the background
- Our sales through this organization are picking up – the tempo in the last month was better than at any time in 2010
- The significant stature of this distributor in the industry is built on decades of good work.
- It is in the nature of such well organized voluntary petitions, that new deliveries are paid according to terms, from funds set aside for this purpose.
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It is in the interest of all Lancaster stakeholders that the business operate normally, and it is clear from our perspective that this is exactly what is happening.
