Stout advised Better 4 You Breakfast, Inc., and its wholly-owned subsidiaries Balance Foods, LLC and Moreno Bros Distributing, LLC (collectively, “B4YB”), on the sale of its assets pursuant to Section 363 of the U.S. Bankruptcy Code. The transaction closed in July 2022.

B4YB prepares, packages, and delivers hot and cold unitized meals to charter schools, nursing homes, and board and care facilities in Los Angeles, San Francisco, and Las Vegas. Balance Foods manufactures and packages private label snack foods, and Moreno Bros distributes bread and tortilla products to school districts and restaurants in the Southern California area.

Stout was retained in May 2022 to assist with an expedited sale transaction of B4YB and to manage ongoing discussions with potential strategic buyers. In July 2022, B4YB executed an asset purchase agreement with Revolution Foods, PBC (“Revolution Foods”) for its assets at an aggregate purchase price of $45 million.

As part of the sale process, Stout’s food and consumer industry bankers, working in tandem with the special situations team, solicited interest from a variety of financial buyers to create a highly competitive dynamic with existing interested groups. Revolution Foods pushed aggressively to complete an expedited sale and ultimately satisfied all claims in full and provided a recovery to B4YB’s equity holders.

Stout’s Mike Krakovsky, Robert von Furth, Aaron Perez, and Jake Kussin-Bordo executed the transaction along with Steptoe & Johnson LLP, the Special Transaction Counsel to the Debtor, and Armory Consulting Co., the Debtor’s Chief Restructuring Officer.