This news is not surprising but it appears that Gaspari Nutrition may be in more trouble than previously known. It is also possible that the filing for bankruptcy could be due to numerous and/or pending lawsuits against them. We shall see
October 13, 2014 — Lakewood, NJ — Gaspari Nutrition, a premium and market leading US performance nutritional supplement company, announced today a preliminary investment and global partnership with Allegro Nutrition LLC (“Allegro”). Allegro’s parent company, Allegro Ltd. is a world leading sales and marketing distribution company with operations in over 20 countries and with a global infrastructure partnership which extends across over 100 distribution hubs spanning Europe and North America.Gaspari Nutrition was founded by International Federation of Bodybuilding and Fitness Hall of Fame member, Rich Gaspari, in 1999. Rich has been involved in the bodybuilding and fitness field for over 30 years. He excelled as a top professional bodybuilder from the mid 80’s through the 90’s, winning Mr. America (now known as the NPC Nationals), Mr. Universe, Professional Mr. World, and is a three time runner up for the most coveted title in professional bodybuilding, the “Mr. Olympia.”
After retiring from professional bodybuilding, Rich began developing his own line of quality supplements and built one of the most formidable and respected brands in the world, Gaspari Nutrition, reaching sales of $85 million per year. The company continues to sell through retailers, such as The Vitamin Shoppe, and through online sites such as www.bodybuilding.com. Rich Gaspari, founder of Gaspari Nutrition, commented, “The last 12 months have seen a period of restructuring and reorganization. I am delighted to announce this new phase of stability and investment for Gaspari Nutrition. This strategic partnership will provide the visionary support needed to propel and highlight the Gaspari Nutrition brand as a world leading sport nutritional brand, while strengthening our global appeal and visibility”. In conjunction with the sale, Gaspari Nutrition will file for Chapter 11 Bankruptcy protection. In Chapter 11, Gaspari Nutrition will be able to restructure its obligations while continuing to operate and meet the needs of its customers, vendors and employees.
“After careful consideration of our options, we believe that Chapter 11 is a necessary step to create a solid foundation for future growth and success of Gaspari Nutrition, Inc.,” stated Rich Gaspari. As a part of the restructuring process, Gaspari Nutrition is negotiating a new line of credit to provide ample funds for working capital until the investment by Allegro is complete. “We are operating and plan to continue manufacturing those quality products which our customers have come to expect from us. After the investment is complete, we intend to introduce new products to provide our customers with the most innovative product offering in the industry. Our success as a company is largely due to the hard work and dedication of our employees, the great customer relationships we have built over our history, and the vendor partnerships we have forged.” said Gaspari. “This step is being taken in order to ensure that our company is able to effectively serve these loyal customers for years to come.”
This investment is in alignment with Allegro’s current ventures into the health and performance nutrition categories with Irish wholefood distributors, WholeFoods Wholesale, and Body Temple, one of the EU’s leading sports nutrition distributors. This will be their first foray in the US sports nutrition market estimated to be a $4.4 billion industry by Nutrition Business Journal. It is anticipated that the transaction will complete in the final quarter of 2014, subject to customary legal conditions and regulatory approvals.
Financial details of the deal were not disclosed, but Heritage Equity Partners, who brokered the transaction, reports that it involves significant investment in the future development and distribution of the Gaspari Nutrition brand. Heritage Equity Partners, formerly “Equity Partners”, based in Easton, MD, provides investment banking services for special situations and has completed in excess of 400 transactions throughout the United States since 1988.