Ultimate Nutrition Files for Bankruptcy

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ultimate-nutrition-logo-featuredAccording to Muscle-Insider and other sources, Ultimate Nutrition has files for bankruptcy.

Ultimate Nutrition has filed for bankruptcy. One of the original manufacturers of whey protein, amino acids, carb powders and MCT oils, Ultimate was known for providing well priced supplements in over 144 countries. According to sources, they blame some of heir financial problems on regulatory scrutiny that led to a battle over its $13 million bank loan. According to Dow Jones, officials at Ultimate Nutrition Inc. put the company into Chapter 11 protection in U.S. Bankruptcy Court in Hartford, Connecticut, after they couldn’t find another lender to refinance its biggest loan, according to documents filed in the case. That loan, which was extended by TD Bank NA, was declared to be in default last year.

In court papers, Ultimate Nutrition attorney Irve Goldman said that while the 200-worker company profited from sales last year, it struggled to make up for a $1 million loss in 2012 after having to pay “millions of dollars of one-time temporary labor charges incurred due to labor strife and onerous regulatory requirements.” (The company sold $47 million worth of products that year, court papers said.)

Mr. Goldman wasn’t more specific about the company’s labor charges and regulatory costs in court papers. He didn’t immediately respond to a request for more information.

20 Quality-Control Citations

Health regulators hit the company with more than 20 quality-control citations after U.S. Food and Drug Administration inspectors visited a company facility and found, among other things, that its workers sent out “a batch of dietary supplement that did not meet established product specifications,” according to the agency’s records.

After those citations and a notice of default from TD Bank, Ultimate Nutrition officials tried to refinance the loan. The last forbearance agreement between them expired on Monday, according to court papers.
Filing for bankruptcy protection gives borrowers a temporary break to continue looking for new borrowing deals.

Ultimate Nutrition officials didn’t explain in court papers whether they would try to sell the company using bankruptcy’s sale procedures.

The company was founded in 1979 by Victor H. Rubino, a former bodybuilder who sadly passed away in 2003. Their manufacturing facility is based near Hartford and apparently they also have a development center in West Palm Beach, Florida. Ultimate Nutrition introduced amino acid tablets, protein powders and fat burners in the 1980s and bottled whey protein powders in the 1990s, according to its website.

Ulitmate Nutrition is also one of the main sponsors of the annual Mr. Olympia bodybuilding contest in Las Vegas.

SOURCES: 

http://bankruptcynews.dowjones.com

https://business-bankruptcies.com/cases/ultimate-nutrition-inc#