Tessemae’s, a Baltimore-based maker of organic salad dressing and condiments sold at dozens of national and regional retailers, plans to sell to a New Jersey owner of specialty food brands for $4.5 million through a bankruptcy procedure, the Baltimore Sun reported. The U.S. Bankruptcy Court in Baltimore must approve the sales agreement between the company, founded 15 years ago by three Annapolis brothers, and Panos Brands. Tessemae’s filed for chapter 11 reorganization Feb. 1 to restructure debts and stop what it called costly and distracting litigation by a former lender. The filing at the time listed liabilities in a range of $10 million to $50 million. After working to stabilize the business and boost orders, the company determined it could best preserve the brand by selling its assets, according to a Dec. 21 court filing. Panos, based in Rochelle Park, New Jersey, manages a portfolio of brands such as Andrew & Everett cheese, KA-ME Asian food products, Walden Farms calorie-free foods and Amore Italian cooking pastes. Panos, which offered $4.5 million, was selected Dec. 18 as the highest or best bidder of two competitors at a bankruptcy auction. The Panos bid excluded Tessemae’s $800,000 in accounts receivable. If the sale to Panos falls through, the company would be sold to McDermott Group, made up of principals of Tesse DIP Fund I LLC. McDermott was chosen as backup bidder with a $4.75 million offer, including accounts receivable.
