Quantum Foods, which provides proteins for food service, military and retail outlets, voluntarily filed for Chapter 11 bankruptcy on Tuesday and is in the final stages of selling most of its business to Idaho-based CTI Foods, according to Fort Mill Times.
"Quantum Foods today filed a voluntary Chapter 11 petition in the District of Delaware to obtain the essential financing necessary to preserve continuity, to the greatest extent possible, for its customers, employees and business partners," the company said, adding it has secured a commitment for $60 million debtor-in-possession financing to fund its ongoing operations.
The company also filed motions to ensure timely payment of wages and benefits for employees, according to Fort Mill Times.
“With enhanced financial backing, Quantum expects to fully deliver on its historic commitment to fulfilling the needs of our customers efficiently, safely and always with superior quality and service. We believe the completion of the sale process will enable us to focus effectively on caring for our customers, vendor partners and employees, who have all been incredibly supportive to the company,” Quantum Foods CEO, founder and owner Edward B. Bleka said in a statement.