NewAge Inc., a direct-to-consumer seller of health and wellness products, filed for bankruptcy yesterday and said that it plans to sell itself, after disclosing material weaknesses in its financial reporting, Reuters reported. The Midvale, Utah-based company and three affiliates sought chapter 11 protection from creditors with the U.S. bankruptcy court in Delaware. Yesterday's filing came three weeks after the company received a default notice on a loan agreement. NewAge said it had $310.9 million of assets and $149.4 million of debts as of the end of 2021. In a regulatory filing, NewAge said it received a $28 million bid from an entity known as DIP Financing LLC to buy substantially all its assets, subject to court approval and higher bids. NewAge also said it lined up $16 million in financing to help it operate while it restructures. The company has not filed annual or quarterly reports this year, after finding a material weakness in its 2020 annual report related to how it reported acquisitions.
