Saving Seafood

Bumble Bee hoping to pay executive bonuses, over objections of creditors

January 10, 2020 — The creditors of Bumble Bee Foods, which filed for chapter 11 bankruptcy protection in November 2019, have asked the judge overseeing the case to prevent the company from paying year-end bonuses to some of its employees.

Bumble Bee is hoping to pay 37 of its employees enrolled in its Key Employee Incentive Program (KEIP) – created after the company filed for bankruptcy – between USD 1.3 million and USD 3.2 million (EUR 1.16 million and EUR 2.88 million) as a performance bonus for helping the company maintain cash flow during its difficult past few months.

Read the full story at Seafood Source

Bumble Bee’s Chris Lischewski convicted of fixing prices of canned tuna

December 4, 2019 — Christopher Lischewski, the former president and CEO of Bumble Bee Foods, was convicted on 3 December, 2019, of helping to orchestrate a price-fixing conspiracy between Bumble Bee, Chicken of the Sea, and StarKist, the so-called “Big Three” players in the U.S. canned tuna sector.

Lischewski was found guilty of one count of price-fixing by a jury in the U.S. District Court for the Northern District of California and faces up to 10 years in prison and a fine of USD 1 million (EUR 900,000). His sentencing has been set for 8 April, 2020. Lischewski’s conviction may also open him up as a target of civil lawsuits filed by parties who overpaid for canned tuna as a result of the price-fixing, according to Eric Snyder, chairman of the bankruptcy practice at Wilk Auslander, a New York City-based law firm.

Read the full story at Seafood Source

Inside Bumble Bee’s long summer of selling itself

November 29, 2019 — On 21 November, the same day it filed for chapter 11 bankruptcy protection, Bumble Bee Foods announced it had entered into an agreement with FCF Co., its primary supplier of tuna, which agreed to acquire the company’s assets for approximately USD 925 million (EUR 836 million).

In a statement accompanying the announcement, Bumble Bee President and Chief Executive Officer Jan Tharp said she “anticipates that the transaction will move swiftly and close within 60 to 90 days.”

Read the full story at Seafood Source

Bumble Bee tuna has filed for bankruptcy

November 27, 2019 — Something fishy is going on.

Bumble Bee Foods, LLC — renowned as for its Bumble Bee canned tuna products — filed for Chapter 11 bankruptcy protection on Thursday, years following a Department of Justice investigation which found evidence of a massive price-fixing scheme by the San Diego-based company.

Taiwanese fish supply chain company FCF Co. plans to put in a $925 million bid for the assets in a deal to be completed within 90 days, CNN reported.

“It’s been a challenging time for our company but today’s actions allow us to move forward with minimal disruption to our day-to-day operations,” Bubble Bee president and CEO Jan Tharp said in a statement.

A staple of American kitchen for over a century, the Bumble Bee brand has been in troubled waters over the past few years.

Read the full story at The Daily News

FCF swoops in for Bumble Bee as it files for bankruptcy

November 22, 2019 — Taiwan-based Fong Chun Formosa (FCF) Fishery Company has entered into an asset purchase agreement with Bumble Bee Foods, which filed for chapter 11 bankruptcy in the U.S. state of Delaware.

The 25-page filing, made on 21 November, includes more detail about FCF’s stalking-horse bid for the company, which was first reported by Bloomberg to be around USD 925 million (EUR 836 million).

Read the full story at Seafood Source

FCF Fishery in talks to purchase Bumble Bee: Bloomberg

November 21, 2019 — In the wake of rumors about Bumble Bee Foods potentially filing for bankruptcy, and that that filing could come this week, the company appears to be in talks with Fong Chun Formosa (FCF) Fishery Company regarding a possible buy-out.

The story, reported by Bloomberg, indicates that FCF would be a “stalking-horse bidder” in the bankruptcy reorganization. Stalking-horse bidders set a low-end bidding bar, which any other companies interested in buying Bumble Bee would then have to either match or exceed.

Read the full story at Seafood Source

‘Stalking horse’ bidder lined up for Bumble Bee as part of likely bankruptcy filing

November 20, 2019 — A “stalking horse” bidder, said to be an industry player, is lined up for Bumble Bee Foods if — or when, according to some executives — the company goes into US Chapter 11 bankruptcy protection, sources told Undercurrent News.

A Chapter 11 filing is seen as highly likely for the beleaguered shelf-stable seafood giant, driven by the lack of a settlement with the litigants in the civil lawsuits against the Lion Capital-owned company over its tuna price fixing, sources said. This comes as Chris Lischewski, the long-time CEO of Bumble Bee, is on trial in San Francisco, California for allegedly leading the price-fixing.

Undercurrent was unable to identify the stalking horse bidder, but Bolton Group International, Canadian Fishing Company (Canfisco), Cooke and Mitsubishi Corp. are four trade players who are said to have looked at all or parts of the business before.

Fong Chun Formosa Fishery Company (FCF), the Taiwanese tuna giant, is already a 22% shareholder in Bumble Bee and Itochu, the Japanese trading house, was also tipped by some tuna sector sources as a possible interested party.

Read the full story at Undercurrent News

Canned Tuna Maker Bumble Bee Preps for Bankruptcy Filing

November 18, 2019 — Bumble Bee Foods LLC is preparing to file for bankruptcy within days over mounting legal expenses stemming from its involvement in a conspiracy to fix prices on canned tuna, according to people familiar with the matter.

The San Diego-based company, owned by London-based private-equity firm Lion Capital, is expected to file a chapter 11 petition shortly and will put itself up for sale, the people said. Bumble Bee didn’t respond to a request for comment. Lion Capital, which bought the company in 2010 for $980 million, also didn’t immediately respond.

Bumble Bee pleaded guilty in 2017 and agreed to pay a $25 million fine for having formed a cartel with its two main competitors, Chicken of the Sea and StarKist Co.

The Justice Department subsequently indicted Bumble Bee Chief Executive Christopher Lischewski for his alleged role in the conspiracy. Mr. Lischewski, who pleaded not guilty, took a leave of absence from Bumble Bee last year and is on trial in California federal court.

Read the full story at The Wall Street Journal

Bloomberg: Bankruptcy a possibility for Bumble Bee

August 7, 2019 — Bumble Bee Foods is considering filing for bankruptcy to alleviate it of increasingly dire financial situation.

The San Diego, California, U.S.A.-based firm, which claims it is the largest seller of packaged seafood in North America, exceeded the leverage ratio it is allowed under the terms of its senior debt, according to Bloomberg. That sent the firm into technical default on its principal operating loan, a USD 650 million (EUR 550 million) facility with Brookfield Principal Credit as the administrative agent. However, its lenders have agreed to a forbearance period, allowing the company to continue its efforts to restructure itself to regain its profitability, according to the Wall Street Journal.

Read the full story at Seafood Source

Bumble Bee Sees ‘Overwhelming’ Positivity From Retailers Since Blockchain Supply Chain Launch

July 10, 2019 — In the fall of 2018, leading shelf-stable seafood provider Bumble Bee Foods began utilizing blockchain technology to track products all the way through its supply chain. The brand has seen significant success from harnessing the abilities housed within the cutting edge technology.

“We’ve had nothing but overwhelming positive feedback from the industry and retailers,” Bumble Bee Foods senior vice-president and CIO Tony Costa told me in an interview.

As a top provider of shelf-stable seafood in North America, Bumble Bee produces products such as canned tuna, salmon and clams. The company also works with frozen goods. “Part of this project is [an] extension of our company. We have another frozen piece of our business called Anova, which we do most of our procurement and resourcing through Asia, mainly out of Indonesia,” Costa said. “The blockchain project has focused around the handline fisheries in Indonesia,” he noted. The project is underway for Bumble Bee’s Natural Blue line, which is part of its Anova brand.

Bumble Bee’s blockchain incorporation uses the technology to track its products from fishers to end consumers, ensuring aspects such as data accuracy and tracking all the way through the supply chain. The beef and grain industries saw similar blockchain application for supply chain with BeefChain and GrainChain.

Read the full story at Forbes