19-year-old grocery brand partner files Chapter 11 bankruptcy

Company Overview - Creative Foods LLC, a commercial bakery product manufacturer based in Baltimore, OH, filed for Chapter 11 bankruptcy on January 14, 2026, to restructure its debt obligations while maintaining its status as a regional supplier and private label partner [3][5] - The company operates two primary manufacturing facilities, including a 75,803-square-foot plant in Osceola, AR, and its headquarters in Baltimore, OH [4] Business Operations - Creative Foods specializes in the production of margarine, spreads, and perishable prepared foods for various food retailers and distributors [5] - The company has recently invested in domestic equipment to reduce reliance on international raw material suppliers and to automate production lines [5] Financial Challenges - The Chapter 11 filing was a direct result of a liquidity crisis triggered by the loss of a contract manufacturing partner that accounted for 50% of the company's annual revenue [6] - Management cited significant macroeconomic headwinds, including a 45% to 55% surge in input costs from European suppliers following the 2022 invasion of Ukraine and sustained labor shortages [6] - The company intends to pursue a Section 363 sale of its assets to preserve the business as a going concern [6]