Facing more than $37 million in debt, the maker of Gourmet Dining-branded frozen meals that are sold at retailers, filed for bankruptcy protection while looking for a buyer, The Wall Street Journal reported yesterday. Company officials put Gourmet Express Acquisition Fund LLC into bankruptcy on Monday, blaming frozen-meals sales that fell to $49 million last year from $61 million in 2013, partly because of slowed sales with Wal-Mart, Wakefern and Aldi. Gourmet Express officials, who predict that sales will fall further this year, also said that the company is paying too much for its facility in Greenville, Ky., and owes money as a result of several lawsuits. These challenges have made it tough for the company to repay its debts, including roughly $1.4 million owed to Siena Lending Group LLC and about $15.3 million owed to affiliates of Genesis Merchant Partners. Gourmet Express officials are looking for buyers and are drafting a sale agreement with one potential purchaser.
