Atlanta-based Multi-Color Corp., a leading producer of retail product labels operating in 90 facilities across 25 countries, has filed for Chapter 11 bankruptcy protection in New Jersey, disclosing $5.9 billion in debt and securing agreements to reduce $3.9 billion of that total. The company simultaneously obtained $250 million in debtor-in-possession financing to support ongoing operations throughout the restructuring process.
According to court filings, Multi-Color attributes its financial difficulties to prolonged instability in the labeling and packaging sector, including the impact of the COVID-19 pandemic, supply chain disruptions, rising labor and material costs, and a sharp decline in demand for packaged goods in 2024. Chief Restructuring Officer Garrett Gabel stated that while corrective actions began in 2024, the long lead times for label orders, which range from one to two years, mean revenues are expected to continue declining during 2026.
The company’s debt profile includes just under $4.8 billion in secured credit facilities, term loans, notes, and leases, with over $1.1 billion in unsecured notes. Multi-Color reached a restructuring support agreement with holders of approximately 72% of its first-lien debt and private equity sponsor Clayton Dubilier & Rice, which acquired the company in 2021 and merged it with commercial printer Fort Dearborn Co.
“The restructuring plan, which includes refinancing and debt-for-equity exchanges, is designed to provide the company with sufficient liquidity to continue operations while reducing its overall debt burden,” the company noted in filings.
The Chapter 11 filing also details the company’s retention of Evercore as investment banker and AlixPartners as financial adviser. Legal representation for the debtor includes Kirkland & Ellis LLP and Cole Schotz PC.
Court documents state that the financing arrangement includes $250 million in new debtor-in-possession funds and a $400 million rollup of pre-petition debt. Multi-Color expects this plan to sustain operations while completing the restructuring in the U.S. Bankruptcy Court for the District of New Jersey.
Founded in 1916, Multi-Color claims to hold the largest global footprint among labeling companies, producing labels for food and beverage, home products, and pharmaceuticals. The company emphasized in filings that the restructuring is intended to allow it to maintain continuity for customers and suppliers while addressing its long-term financial stability.
