Gold Standard Baking acquired by 37 Baking Holdings

USA — 37 Baking Holdings, LLC, a network of North American family offices in partnership with the Gold Standard management team, has agreed to acquire Gold Standard Baking, LLC, North America’s largest maker of croissants and a leading manufacturer of dough-based sweet baked goods.

 According to the companies, 37 Baking is partnering in the acquisition with the Gold Standard management team, which includes Haq Chaudary, who will continue to lead the business as president and chief executive officer.

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The proposed acquisition is being facilitated by a Chapter 11 filing— a bankruptcy generally filed by corporations involving a reorganization of assets and debt— in Delaware by Gold Standard and its parent, Gold Standard Holdings, Inc.

Gold Standard has sought customary relief from the court to ensure its operations proceed as usual and said it has sought approval to consummate the sale to 37 Baking promptly.

The company said in court filings that the COVID-19 pandemic exacerbated existing staffing challenges, saying that workforce shortages left it unable to grow revenue forcing it into bankruptcy. It defaulted on its loans in 2020 and has been unable to make scheduled payments.

According to its June 22 Chapter 11 filing, Gold Standard has estimated assets of between US$100 million and US$500 million and estimated liabilities of between US$100 million and US$500 million. The company said it has between 1,000 and 5,000 creditors.

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The company said the sale is subject to any higher and better offers that may be submitted through the court supervised process, but in the meantime will continue to satisfy customer orders, and pay vendors and its employees.

“To navigate the changing economic climate, we have developed a plan that will unburden Gold Standard’s business of excessive debt and sell its assets to a new owner who will build on and continue our longstanding success in the baked goods industry,” said Haq Chaudary, President and CEO.

“We look forward to executing on this negotiated strategy swiftly and efficiently and continuing our business in its next chapter.”

Gold Standard produces 1.7 million pounds of baked goods per week, according to a court filing cited by Reuters. About half of its output is croissants and half pastry.

Earlier this year Gold Standard sold its Pleasant Prairie, Wis., manufacturing facility to Crown Bakeries. The 200,000-square-foot baking plant, which opened in 2017, produces and distributes laminated dough croissant products.

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