Overview
- Primrose sought Chapter 11 protection this week in the Northern District of Illinois to maintain operations while it reorganizes more than $12 million in obligations.
- The company is asking the court to let it draw secured financing from a 2024 $7.5 million line of credit now held by Pathward and to use cash collateral to fund the business.
- Roughly 90 workers, most supplied by a staffing firm, would be paid through new financing as the factory continues producing contract candies.
- Labor Solutions holds a $7.5 million unsecured claim and has a pending breach-of-contract suit, yet it continues staffing the plant and is described as supportive of the case.
- Revenue dropped to $7.8 million last year from $11.8 million in 2024, and company counsel attributes the strain to rising production costs combined with longstanding debt.