Apple and cherry growing, packing and distribution company Brewster Heights Packing & Orchards has filed for voluntary Chapter 11 restructuring in the U.S. Bankruptcy Court for the Eastern District of Washington.
“We have taken this deliberate step to provide BHPO with the financial framework needed to address our balance sheet, preserve our operations, and position this business for long-term success,” Daniel Gebbers, CEO of Brewster Heights Packing & Orchards, says in a statement.
Brewster Heights Packing & Orchards is a key vertically integrated arm of the Gebbers Farms broader tree fruit footprint but is a separate entity, as a spokesperson for Brewster Heights Packing & Orchards tells The Packer.
“This restructuring provides a path to better align our financial obligations with our cash flow profile,” the spokesperson says.
The hearing begins on June 9.
Industry Pressures Squeeze Cash Flow
The spokesperson says the company carried a level of funded debt that became difficult to service amid the challenges facing Washington state’s tree fruit industry.
“In 2024, Washington state agriculture operators experienced the lowest take-home pay in nearly 50 years,” the spokesperson says, who also notes that Brewster Heights Packing & Orchards has invested in proprietary varieties and premium acreage designed to generate long-term returns. And while those assets are sound, the spokesperson says, “their value has been constrained by a capital structure that no longer reflects the business’s current realities.”
Operations Continue Uninterrupted With DIP Financing
Brewster Heights Packing & Orchards’ operations, including packing facilities, controlled atmosphere storage, logistics, grower programs, customer service, food safety compliance and shipping, continue throughout the filing process.
“BHPO is not going out of business and is not liquidating,” the spokesperson says.
As part of its filing, the company says it has secured debtor-in-possession financing to fund operational needs, subject to court approval. This funding covers payroll, employee benefits, orchard operations, packing and storage activities, logistics, transportation, grower program support, input procurement and other business activities. The company says this DIP facility was arranged prior to the restructuring filing.
Stalking Horse Agreement and Asset Auction
Brewster Heights Packing & Orchards says it has entered into a letter of intent with Legendary Fruit, an International Farming company, as its stalking horse partner. International Farming is an asset manager and farms more than 7,000 acres of apples, cherries and pears in Washington state. Legendary Fruit operates key regional hubs in the Yakima Valley and north-central Washington. Legendary Fruit has also worked closely with Brewster Heights Packing & Orchards for many years.
“In the past, we have worked with them to optimize packing capacity,” the spokesperson says. “Together, the business will produce approximately 12 million boxes of apples and 4.5 million boxes of cherries annually, enhancing Legendary’s scale, making it one of the largest producers in the industry and strengthening its premium fruit offering.”
The company says this partnership, coupled with the DIP funding, will ensure operations continue as normal through the restructuring process and this letter of intent reflects interest in its assets, brands, orchards, proprietary apple varieties, storage infrastructure, long-standing customer and grower relationships and more.
“These branded variety programs are among BHPO’s most strategically valuable assets,” the spokesperson says. “All branded variety programs are continuing.”
Upon completion of the transaction, the combined company will have access to more than 15,000 acres of land along with Brewster Heights Packing & Orchards’ rights to produce and market proprietary varieties such as SugarBee, Rockit, Lucy Rose and Lucy Glo apples.
While Legendary Fruit has provided the initial baseline bid, the company says bankruptcy court will require an open, competitive auction to see if another buyer will offer a higher price for the assets.
“Our orchards are producing. Our packing operations are running. Our teams are in the field,” Gebbers says in a statement. “Every customer order, every grower relationship, and every employee commitment continues exactly as before. This is not the end of BHPO — it is the beginning of a stronger chapter.”
