Food52 Inc., the once-red-hot Brooklyn-based cooking and home décor company, has filed for bankruptcy protection, a sharp turn for a brand that built its reputation on community, creativity and curated kitchens.
The Chapter 11 filing came this week in Delaware bankruptcy court, just days after a sweeping round of layoffs left the 16-year-old company reeling and short on cash.
Funding Cut Sparks Sudden Collapse
Court documents show Food52’s lender abruptly withdrew its financial support on Dec. 15, leaving the company with virtually no money on hand. The filing describes a business thrust overnight into crisis mode, struggling to stay afloat after the funding lifeline was severed.
Food52, which runs a recipe and lifestyle platform and sells premium home goods online, declined to comment publicly on the bankruptcy.
A Search for a Buyer Turns Urgent
Founded by New York Times food journalists Amanda Hesser and Merrill Stubbs, Food52 had already been shopping itself to potential buyers when lender Avidbank pulled its backing, according to court filings. Avidbank did not respond to requests for comment.
Out of that scramble emerged a bidder: Boston-based America’s Test Kitchen, known for its public television cooking programs. The company agreed to serve as the stalking-horse bidder, offering $6.5 million to acquire Food52, it announced Tuesday.
The proposed sale price underscores how dramatically Food52’s fortunes have shifted. In 2019, the company was valued at about $100 million, when private equity firm the Chernin Group invested $83 million for a controlling stake, the Wall Street Journal reported.
