Select Nutrition Files Bankruptcy

Select Nutrition Files Bankruptcy

EAST MEADOW, N.Y.--Select Nutrition Distributors, based here,filed for Chapter 11 bankruptcy protection on Feb. 8. Chief executive officerSteve Falk said the company is still doing business on a cash-in-advance basisand intends to come out of the protection before the end of the year. SelectNutrition was formerly known as Super-Nutrition Distributors, but changed itsname in late January after a two-year discussion with the vitamin manufacturerSuper Nutrition; the name change was the only part of the settlement, and nofinancial payment was required.

According to Falk, his company got caught in expansion mode when the industrystarted downsizing. "We just got caught and couldn't control our expensesquickly enough to turn around our financial situation," Falk said. Thecompany opened a new 100,000-square-foot, state-of-the-art distribution facilityin Philadelphia in July 2000; Falk said the move was a "fiasco." Hesaid the company posted a huge loss each month starting in July and eventuallyran out of operating capital in late January 2001. The company had opened a68,000-square-foot West Coast Distribution Center in early 1999 to serviceindependent health food stores in 19 Western states.

Falk said he has received a very good response to this news from majorsuppliers, including Twin Laboratories and Natrol, as well as retail customerssuch as Nutrition Headquarters and Food For Thought. "We need the supportof our vendors and customers to come out of this as we intend," Falk said."Overall, everyone has shown total understanding of our situation and wantsto work with us."

For more information, please contact Select Nutrition at its N.Y. corporateoffices, (516) 357-0041.