Alessi, a bakery and catering business based in Florida, US, has filed for Chapter 11 bankruptcy protection, seeking to reorganize its debts. The company ran into financial troubles due to high commodity prices.
In March 2007, the company initiated an expansion plan by acquiring a new plant in Tampa, partially funding the transaction through a loan from Zions First National Bank. It also upgraded its warehouse by adding freezer and cold storage equipment.
However, declining sales and increases in the price of flour, sugar and butter created pressure on the margins.
Alessi Bakery posted revenue of $11.9m for 2011 of about million, declared its assets in a range from $10m to $50m and liabilities in the same range.
Currently, the company owes $5.9m to Zions; $3m to US Small Business Association; $1.1m to Southern Commerce Bank; $250,000 to Heritage Bank. The company noted that it is currently working with banks and suppliers.
