Latest news with #J.M.Smucker
Miami Herald
a day ago
- Business
- Miami Herald
Popular regional food brand files for Chapter 11 bankruptcy
Consumers face the risk of losing some of their favorite products whenever a food manufacturer files for bankruptcy. Commercial bakeries produce some of the most beloved products, and Hostess Brands is one of the most popular bakery brands, offering Wonder Bread, Twinkies, Ho Hos, Ding Dongs, and their fruit pies for decades. Don't miss the move: Subscribe to TheStreet's free daily newsletter Hostess broke a lot of hearts after it filed for bankruptcy in January 2012, shut down operations, and liquidated its products. Luckily for its fans, J.M. Smucker in September 2012 purchased the company for about $5.6 billion and restarted the business. Related: Another popular pizza dining chain files Chapter 11 bankruptcy Another food manufacturer, Hearthside Food Solutions, which made various snack and food products for distributors such as Mondelez Global, Kraft Heinz Foods, and Pepsico, on Nov. 22, 2024, filed for Chapter 11 bankruptcy protection with a restructuring support agreement to hand 100% ownership of the company to its first-lien lenders. Hearthside, known as H-Food Holdings, restructured its debt, reorganized, and emerged from bankruptcy on March 31, 2025, as a new company, Maker's Pride LLC. Through the restructuring process, H-Food eliminated about $2 billion in funded debt. The company emerged with about $600 million in liquidity, including $200 million in new money through an equity rights offering and another $190 million of additional capital from a new asset-backed loan facility, according to a Maker's Pride statement at the time. "The swift completion of our financial restructuring process marks a pivotal moment for our company and is a testament to the dedication of our valued team members and committed support of our customers and financial partners," Darlene Nicosia, chief executive officer of Maker's Pride, said in a statement. The Downers Grove, Ill., company manufactures and produces convenience foods, including baked, refrigerated, and frozen foods, sweet and salty snacks, and nutrition bars, as a full-service provider of food packaging services for many of the world's premier brands through a network of 27 facilities and is the largest private bakery in the industry. And now, another popular commercial bakery has declared bankruptcy, as the parent company of Phoenix-based artisan bakery Noble Bread has filed a Chapter 11 petition to reorganize its business. The bakery and restaurant owner's parent Noble Goodness LLC and three affiliates filed their Subchapter V petition in the U.S. Bankruptcy Court for the District of Arizona on May 29, listing $1 million to $10 million in assets and $1 million to $10 million in liabilities. Related: Major logistics and trucking company files Chapter 11 bankruptcy The debtor did not indicate a reason for filing for bankruptcy in its petition. Nobel Bread operates a bakery facility that produces 30 different types of bread, as well as a modern wood-fired deli restaurant, Noble Eats, located in the Biltmore District in Phoenix. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The bakery says that it uses old-world techniques, "only using organic GMO-free flours, water, sea salt, and organic levain starter, which is a culture of wild yeasts used slowly to leaven the bread," according to Noble Bread's website. The company claims that it takes 36 hours to make one loaf of bread. "Utilizing whole grains, and ancient grains makes the bread far more complex and biologically active than just plain white bread," Noble Breads said on its website. The artisan bakery's products are available at Noble Eats, 11 AJ's Fine Foods gourmet markets throughout Arizona, and at a dozen farmers' markets throughout the Grand Canyon State. Related: Another major internet company files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Indianapolis Star
5 days ago
- Business
- Indianapolis Star
East side Indy Hostess plant will close by early 2026, J.M. Smucker says
J.M. Smucker has announced plans to shutter the longstanding Hostess plant on the east side of Indianapolis by early 2026, a move that is expected to put hundreds of local workers out of a job. J.M. Smucker, the parent company of Hostess based in Orville, Ohio, said in a May 27 press release it aims to consolidate operations and sell the Indianapolis facility at the corner of 30th Street and Shadeland Avenue Roughly 260 people work at the Indianapolis Hostess plant, according to a facility map on the Smucker website. Since 1957, workers at the east side plant have baked beloved products, beginning with Wonder Bread and later expanding to other Hostess baked goods, like the iconic Twinkies cakes and Donettes mini donuts. The plant changed hands in the 1990s and briefly closed in 2012 due to Hostess declaring bankruptcy before reopening a year later. Hostess Brands, along with the Indianapolis facility, was acquired by the J.M. Smucker Company in 2023. In a statement, J.M. Smucker executives said the closure is part of the company's "Sweet Baked Snacks" strategy, which is focused on growing the Hostess brand and increasing the company's position in the sweet baked goods category at the grocery store. "This decision continues the ongoing work to ensure our manufacturing network is optimized to mitigate costs and reduce complexity in support of the execution of our Sweet Baked Snacks strategy, which is focused on stabilizing the Hostess business and positioning it for long-term growth," said Judd Freitag, Senior Vice President and General Manager, Pet and Sweet Baked Snacks. "Any decision that impacts our employees is only made after careful consideration. We appreciate the contributions of our Indianapolis employees, and we will support them through this transition." Indianapolis manufacturing: Roche will put $550 million facility for glucose monitors in Indianapolis, adding 650 jobs The company also makes Hostess products at two plants in Kansas and one site in Georgia. J.M. Smucker will release more information on how it will close and sell the Indianapolis plant on its June 10 earnings call.
Yahoo
11-05-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy The J. M. Smucker Company (NYSE:SJM) For Its Upcoming Dividend
The J. M. Smucker Company (NYSE:SJM) stock is about to trade ex-dividend in four days. The ex-dividend date is usually set to be one business day before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Meaning, you will need to purchase J. M. Smucker's shares before the 16th of May to receive the dividend, which will be paid on the 2nd of June. The company's next dividend payment will be US$1.08 per share, and in the last 12 months, the company paid a total of US$4.32 per share. Based on the last year's worth of payments, J. M. Smucker stock has a trailing yield of around 3.9% on the current share price of US$111.54. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether J. M. Smucker can afford its dividend, and if the dividend could grow. Our free stock report includes 3 warning signs investors should be aware of before investing in J. M. Smucker. Read for free now. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. J. M. Smucker's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover. Given that the company reported a loss last year, we now need to see if it generated enough free cash flow to fund the dividend. If J. M. Smucker didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. Over the last year it paid out 56% of its free cash flow as dividends, within the usual range for most companies. View our latest analysis for J. M. Smucker Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. J. M. Smucker was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. J. M. Smucker has delivered an average of 5.4% per year annual increase in its dividend, based on the past 10 years of dividend payments. Remember, you can always get a snapshot of J. M. Smucker's financial health, by checking our visualisation of its financial health, here. Has J. M. Smucker got what it takes to maintain its dividend payments? First, it's not great to see the company paying a dividend despite being loss-making over the last year. On the plus side, the dividend was covered by free cash flow." Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. Although, if you're still interested in J. M. Smucker and want to know more, you'll find it very useful to know what risks this stock faces. To help with this, we've discovered 3 warning signs for J. M. Smucker (1 makes us a bit uncomfortable!) that you ought to be aware of before buying the shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
21-04-2025
- Business
- Miami Herald
Major retail food brand files for Chapter 11 bankruptcy
Retail food brands, whose goods are sold in grocery stores, face many challenges to achieve profitability and avoid financial distress and bankruptcy. Companies need to have adequate marketing and advertising budgets to showcase their products to the public and obtain coveted shelf space in stores where shoppers can obtain their goods. Don't miss the move: Subscribe to TheStreet's free daily newsletter An internet presence is also essential to the success of retail products, as more consumers today are searching Amazon or other online retailers for goods they want or going right to the retail company's website to purchase products. Related: Major healthcare provider files Chapter 11 bankruptcy One of the most significant retail companies to face financial distress and file for bankruptcy was Hostess Brands - the maker of Wonder Bread, Twinkies, Ho Hos, and Ding Dongs - which filed its petition in January 2012, liquidated its products, and disappeared from store shelves for months. Hostess made its comeback after J.M. Smucker in September 2012 agreed to purchase the defunct company for about $5.6 billion. Major dairy companies have also filed for bankruptcy in recent years as Borden Dairy filed bankruptcy in 2020 and 2022, and Dean Foods filed in 2019. Borden and Dean Foods both sold their businesses in bankruptcy in 2020. The Borden's label is still found on many products, and Dean Foods' former products, such as Dairy Pure, Land O'Lakes, and Friendly's, can also still be found in supermarkets. Iconic retail food producer Atlantic Natural Foods LLC, which was established in 1890, markets its plant-based products on Amazon, including its Loma Linda brand Big Franks vegan hot dogs, plant-based canned Tuno fish and canned Chik'n, neat plant-based egg substitute, and its caffeine-free coffee alternative Kaffree Roma. Since 2019, the company's plant-based food products could be found at various stores, such as Costco, Walmart, Target and Aldi, according to company statements. The company has said its products are available in over 25,000 stores in the U.S. and 30 countries. Atlantic Natural Foods LLC filed for Chapter 11 protection on April 7 to reorganize its business five months after terminating a pending merger agreement with Above Foods. The company did not state a specific reason for filing for bankruptcy in its petition. Related: Huge burger chain franchisee files for Chapter 11 bankruptcy Atlantic Natural Foods listed $10 million to $50 million in assets and $1 million to $10 million in liabilities in its petition filed in the U.S. Bankruptcy Court for the Eastern District of Louisiana. More bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy Nashville, N.C.-based Atlantic Natural Foods, which produces six plant-based retail food brands Loma Linda, Chik'n, Tuno, neat, Kaffree Roma, and Modern Menu, in a mutual agreement on Nov. 1, 2024, withdrew from a sale transaction that called for Above Foods to purchase Atlantic Natural Foods. The companies blamed the global impact of the Covid-19 pandemic, supply chain disruptions, and rising food inflation as the key factors in their decision to cancel the deal. The deal was estimated at about $30 million when it was first revealed in October 2021, according to Nosh. The companies said in a mutual statement in November that the decision reflected a strategic realignment following a comprehensive evaluation of the evolving business landscape. "Operating in the industry's ever-changing landscape has not been without its challenges, but we remain steadfast in our commitment to resetting the standards for the years ahead," Atlantic Natural Foods Chairman Doug Hines said in the statement. "We are drawing on tried-and-true food preparation and supply methods that have withstood the test of time to meet the needs of our global consumers." Atlantic Natural Foodsand Above Foods will maintain collaborative ties, with Atlantic Natural Foods retaining shares in Above Foods, which will in turn retain interest in Atlantic, the companies said in a statement. Related: Another huge auto parts brand files for Chapter 11 bankruptcy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Forbes
14-04-2025
- Business
- Forbes
Hostess Twinkies' Munchie Mobile: Smucker Targets Stoners For 4/20
Imagine the iconic kid's brand Hostess Twinkies cruising in a "Munchie Mobile" to cannabis dispensaries. This isn't The Onion. This isn't a Saturday Night Live sketch. It's J.M. Smucker's new marketing tactic for the 106-year-old Hostess brand they bought in 2023. As Katie Deighton describes in the Wall Street Journal, Twinkie the Kid is "taking a siesta." In his place is a campaign targeting cannabis fans celebrating 4/20, the unofficial national holiday for cannabis culture. The Munchie Mobile visits East Coast dispensaries at 4:20 p.m. daily. It ends with a six-hour event in Brooklyn on April 20th. This initiative marks a sharp turn for a brand known for childhood nostalgia. Smucker admits Hostess had lost relevance. I find this embrace of cannabis culture fascinating after decades of family-friendly marketing - it seems unprecedented for a brand like Twinkies. A pun-filled press release notes the brand is 'taking the high road' and includes the promise, 'We Twinkie swear it will be lit.' Smucker paid $4.6 billion for Hostess at a time when the pandemic was boosting sales of snack items. Now, snack sales are down industry-wide. Weight-loss drugs threaten to change eating habits. With their sweet snack sales dropping by 7%, Smucker needs to find new customers fast. Smucker is trying multiple approaches. They've redesigned packaging. They created a "Speakie Snackie" promotion. People say phrases like "Bet you dollars to Donettes I have the munchies" for free snacks. Brands need emotional connections with consumers. Smucker gets this. They tap into Hostess's bold heritage with slightly irreverent marketing. They're also launching mini versions of popular items. They have already brought back Suzy Q's cakes and my own guilty pleasure, HoHos. This strategy uses sound psychology. Associating Twinkies with post-cannabis snacking creates strong purchase triggers. When you get "the munchies," you might remember that Twinkie ad. Free samples leverage the principle of "reciprocity." I've seen this work countless times. When someone gives us something free, we feel obligated to return the favor. And, at the same time the brand is handing out the freebies, they are showing the recipients that they are part of the same identity group. That invokes Robert Cialdini's 'liking' principle, if not the stronger 'unity.' Of course, only a handful of customers will be able to visit the Munchie Mobile in person during it's brief East Coast run. The brand is counting on broader exposure driven by its unexpected and unconventional pivot. Many marketers fear trying things that might alienate traditional customers, but the old fans of Hostess Twinkies were already leaving. Sometimes bold moves are needed to stay relevant.
