Updates to add after hours stock reaction
Plant-based foods company Tattooed Chef (NASDAQ:TTCF) on Friday said it intends to file for bankruptcy and put its assets up for bidding.
Shares of TTCF slumped 35.1% to $0.35 in extended trading. The stock has shed 56.1% YTD.
TTCF said it plans to file for protection under chapter 11 in the U.S. bankruptcy court for the central district of California.
“Our business has continued to be impacted by a challenging financing environment and an inability to raise additional capital. These factors, among others, in the view of the management team and Board of Directors necessitated the Chapter 11 filing,” TTCF CEO Sam Galletti said in a statement.
The bankruptcy filing plan comes as Tattooed Chef (TTCF) struggles with declining quarterly revenue, continued losses and a dwindling cash pile.
TTCF said it will market its assets and solicit competing bids from interested parties. The company has retained SC&H Capital as its investment bank to manage the sale process and seek qualified bidders.
TTCF added that it expects to continue operations during the chapter 11 process and is finalizing terms of debtor in possession financing.
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