NewAge Beverages is shedding its Colorado bottling operation, a move that cuts to the heart of how the company distributes products to its network of sellers.
The parent company filed a Chapter 11 restructuring plan on November 30 that carves out NewAge Beverages for sale while keeping the parent company and its two major subsidiaries, Ariix and Morinda, intact. Legacy Distribution Group is buying the operation for $4.5 million.
The Colorado facility matters because it's the engine behind NewAge's direct-store distribution network. Two wholly-owned subsidiaries, NABC Inc. and NABC Properties LLC, operate the DSD Business from a warehouse at 18245 East 40th Avenue in Aurora, Colorado. They stock grocers, big box retailers and convenience stores across the state. The operation has been running for over two decades and serves roughly 5,000 outlets.
NewAge's motion to sell the operation cleared approval on November 23, just days before the bankruptcy plan landed in court.
The buyer, Legacy Distribution Group, is owned by Canadian corporation CBD Global Sciences, which does business under the name Global Sciences. CEO Brad Wyatt called the acquisition "a positive achievement" for both companies, citing alignment in the Colorado market on service quality.
That alignment runs deeper than a simple acquisition. NewAge and Global Sciences have had a working relationship dating back at least to 2020, according to court documents. The exact terms of their deal remain undisclosed, but the structure suggests NewAge retained enough leverage to ensure its brands—sold through Ariix and Morinda—can continue flowing through the distribution network it's now surrendering.
The sale includes assumption of the Aurora lease. Working capital adjustments will be made based on terms outlined in the asset purchase agreement filed with the motion.
This maneuver highlights how MLM companies compartmentalize operations during bankruptcy. By keeping the parent entity and brand subsidiaries separate from the distribution infrastructure, NewAge can ostensibly weather the chapter 11 filing while the actual logistics of getting products to market transfer to a third party. Whether that strategy protects the core business depends on Legacy's willingness and ability to keep moving NewAge products—something the undisclosed terms of their agreement may address.
🤖 Quick Answer
What is NewAge Beverages' Chapter 11 restructuring plan entailing?NewAge Beverages filed a Chapter 11 restructuring plan on November 30, carving out the company for sale while maintaining its parent company and two major subsidiaries, Ariix and Morinda, as intact entities. Legacy Distribution Group acquired the operation for $4.5 million.
Why is the Colorado bottling facility significant for NewAge Beverages?
The Colorado facility serves as the operational engine of NewAge's direct-store distribution network. Two wholly-owned subsidiaries operate the DSD Business from a warehouse in Aurora, supplying grocers, big box retailers, and convenience stores across Colorado.
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