Papa Grande Gourmet Foods, LLC
Founded in 1956 and headquartered in San Antonio, TX, Papa Grande Gourmet Foods, LLC d/b/a Garcia Foods (“Papa Grande” or the “Company”) is a leading manufacturer and distributor of Mexican food products, such as chorizo, barbacoa and tamales, that are sold across the United States. The Company’s brand names have generations of loyal customers through its strong relationships with leading supermarkets, grocery stores, wholesale distributors and local restaurants.
While Papa Grande had a strong history of successful operations, it began to face profitability challenges and growing deferred maintenance needs, which resulted in losses. Constrained liquidity eroded the Company’s ability to purchase raw materials and remain in good standing with their suppliers. As such, the Company was forced to seek relief under Chapter 11 to preserve the value of the business.
SSG was retained to conduct a comprehensive marketing process and solicit offers for the Company. The process attracted significant interest from parties that resulted in multiple bids sourced by SSG, including the stalking horse bidder for the Company’s assets. After an active auction with numerous rounds of bidding, the bid from Mission Consumer was determined to be the highest and best offer for the Company. SSG’s special situations sale expertise in the food and beverage industry enabled Papa Grande to continue operations as a going concern, preserve jobs and maximize value for all stakeholders.