A Denver distributor of organic produce has successfully emerged from Chapter 11 bankruptcy after filing just under two years ago.
As of late July, Grower’s Organic was still 45 to 60 days away from a final decree from the bankruptcy court, but had already started paying back its creditors, according to a news release.
Brian Freeman founded Grower’s Organic in 2005 and the company grew in size and volume for several years, leading to the formation of GO Transportation in 2012 to handle its distribution needs. The transportation company ran into difficulties and closed in August 2015.
Logistical inefficiencies of multi-state trucking, high gasoline prices and several employees who were terminated for cause led to the need to reorganize in 2015, according to the release.
“I decided that there was only one option to save the company and ensure that small organic farmer vendors would be repaid,” Freeman said in the release. “I cut headcount by 90%. My trusted core team and I worked very hard. As we genuinely care about the farmers we source from, being able to pay them back meant everything,” he said.
Over the past 22 months since its Chapter 11 petition was accepted by the court in 2015, Grower’s Organic has grown its monthly revenue by 200%, according to the release.
That growth has attracted investors whose financing has helped the company reach its final restructuring goals and move forward with plans for continued growth and profitability.
Freeman said the company will continue its commitment to sourcing high quality products from unique and small organic growers who rely on Grower’s Organic for their success.