An award-winning food distributor has filed for bankruptcy.
Cozy Harbor Seafood, a Maine-based seafood processing company, filed for Chapter 11 as it seeks a sale.
The company is well-known for providing marine proteins to major grocery stores around the world, including Wegmans, AEON, Giant, HEB, and Hannaford.
But like many food companies, it has racked up debt following 2020 Covid lockdowns.
Its sales of lobsters and fish will continue during the bankruptcy period, lawyers for the company confirmed to local NBC affiliate WCSH-TV.
‘For more than 45 years, Cozy Harbor Seafood has been a leader in sharing Maine’s iconic lobster catch with the world,’ John Norton, the company’s president and co-founder told the station.
‘Despite the many challenges we’ve faced over the last 45 years, our business is woven into the social, cultural and economic fabric of Maine.’
In 2017, the company won the Seafood Excellence Global Award at the Seafood Expo Global.
A Maine-based seafood supplier that sells products to nationwide grocery stores has declared bankruptcy (stock image)
Judges heaped praise on the company’s lobster meat, saying the direct-to-retail model kept the proteins fresher than the competition.
Cozy Harbor is the latest in a growing list of food suppliers, restaurants, and grocery brands that have filed for Chapter 11 bankruptcy this year.
Earlier this week, Del Monte Foods Inc., the American grocery staple behind some of the most recognizable canned foods, also filed for Chapter 11 bankruptcy protection.
For decades, the company has produced canned fruits and vegetables for shoppers.
Del Monte, not to be confused with the fresh produce supplier in Europe and the UK, said it will maintain its core businesses after securing a $912.5 million loan.
But shifting consumer habits have left the brand struggling to stay relevant, Sarah Foss, the head of legal and restructuring at Debtwire, told DailyMail.com.
‘Del Monte says that consumer demand has declined causing it to incur increased costs related to surplus inventory,’ she said.
‘Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives.’
Food companies across the US – including grocery suppliers and restaurants – have struggled with rising costs, changing consumer sentiment, and a renewed focus on fresh foods
Restaurant brands have been under similar pressure.
For years, low- and middle-income Americans have tightened their belts while dealing with food inflation.
Cutting back on restaurant visits has become a common way for consumers to save money. It’s also contributing to an economic slowdown for mid-tier restaurants.
And, restaurants have been dealing with inflationary costs on their own offerings.
The toxic mix of higher cost and lower traffic has plunged multiple brands.
For example On The Border, Hooters, and Red Lobster have all filed for bankruptcy.
Meanwhile, other restaurant staples, like Denny’s, Applebee’s, Outback Steakhouse, and Cracker Barrel have all reported shrinking sales estimates, as they believe shoppers will still cut back in the next quarter.
