Information for Creditors of Perky Jerky, LLC
Case Number 21-15685 in the United States Bankruptcy Court for the District of Colorado
THE DEBTOR’S BUSINESS
Perky Jerky, LLC is a Delaware company with its principal place of business in Colorado. It is a wholesaler of all natural meat jerky products and distributes to a variety of retailers, while also selling directly to customers through its website. The Debtor’s jerky products include turkey, beef, and pork varieties, according to documents filed in its bankruptcy case.
The Debtor has suffered since the onset of the COVID-19 pandemic. Its retail partners severely cut their orders due to diminished foot traffic in their stores. Compounding the issues are the rising ingredient and supply costs for Perky Jerky’s raw materials. While it withstood the losses for some time, the company is unable to continue operations in the current state.
FUTURE PLANS FOR THE COMPANY
In its bankruptcy papers, the Debtor has indicated that it intends to market and sell the business through the bankruptcy case. Before the pandemic disrupted its operations, the Debtor had solicited bids and had indications of interest to buy the Perky Jerky brand from multiple parties. However, the potentially interested parties all backed out when the negative effects of the pandemic on the economy and the Debtor’s business began to be known.
Through bankruptcy, the Debtor intends to pursue an ongoing sale process. It is likely that the Debtor will receive Court permission to hire a professional investment banker or financial advisor to help them solicit bids for the company. Perky Jerky has a duty in bankruptcy to try to maximize the value of its assets to try to pay back creditors as much as possible.
CREDITOR CONCERNS
The Debtor has indicated that its assets are worth approximately $1.9 million. Against that are its debts: around $1.1 million in secured debt and over $14.5 million in unsecured debt. When the debt is so high as compared to asset value, the creditor concern is obvious. Even if the Debtor is able to sell at a premium, which is not likely given the pandemic’s lingering effects and the existence of the bankruptcy case, it is highly unlikely that all creditors will be paid in full through a sale.
Creditors have a right to participate in the bankruptcy case and try to influence the sale process. While the prospects for repayment in full may be small, creditors can try to push for a better outcome. Unsecured trade creditors may feel helpless in a large Chapter 11 case but participating in a creditors’ committee allows small businesses to have a big voice. If you have questions about committee participation or bankruptcy in general, you can reach out to PRLT by clicking here.
PRLT does not represent Perky Jerky or any of its affiliates. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Perky Jerky bankruptcy case or anything discussed on this page, please contact us.