Select Nutrition Emerges from Bankruptcy 33929

Select Nutrition Emerges from Bankruptcy

EAST MEADOW, N.Y.--On Sept. 27, Select Nutrition Distributors Inc. announced it had emerged from Chapter 11 bankruptcy, which it had filed for on Feb. 8. On Sept. 6, the Federal Bankruptcy Court confirmed Select Nutrition's reorganization plans, which include receiving equity investment from a credit facility.

Select Nutrition, formerly known as Super-Nutrition Distributors, had been caught in a down-trending economy when it opened a new 100,000-square-foot, state-of-the-art distribution facility in Philadelphia in July 2000; the company eventually ran out of operating capital by late January 2001. Select Nutrition's operating subsidiaries maintained normal customer service and business operations, as well as paying trade creditors, over the past year. The company's new business plan includes equity investment from Dime Capital Partners, a subsidiary of Dime Bank and a new credit facility from CIT Business Credit.

President Steven Falk stated that the company emerged so quickly from bankruptcy primarily due to "tremendous loyalty and support from creditors and customers alike." He added that the company had also increased productivity and decreased operating expenses without sacrificing service. "This emergence from bankruptcy comes at a particularly significant time as the company celebrates its 25th anniversary [in September]," Falk said.