Frank D’Angelo, whose former juice and beer companies collapsed under more than $120 million in debt, is buying back the assets of one of them.
A judge has approved a deal whereby a numbered Ontario company owned by the D’Angelo’s family will purchase D’Angelo Brands, which is currently shut down and under court protection from creditors.
D’Angelo, president and chief executive officer of the numbered company, told the Toronto Star his family wanted to keep the juice and energy drink maker after the court recently allowed a sale of its assets.
Meanwhile, the future of the other insolvent company, Steelback Breweries, remains uncertain. Court filings show management has temporarily ceased operations and is looking at options.
D’Angelo did not rule out a return to brewing.
Details of the D’Angelo Brands deal, including how much the family paid for it, remain under court seal until completion. However, court filings show the family provided a cash deposit of $297,000.
In allowing the sale and an extension of court protection until May 16, Madam Justice Sarah Pepall said the court supervisor monitoring the insolvent companies recommended the deal after a bidding process in which six parties made offers.
The company’s management also concluded the D’Angelo family proposal represented the “highest and best offer.”
D’Angelo Brands and Steelback shut down operations in December pending reviews.
The beverage company, which produces fruit juices and energy drinks with names such as Cheetah Power Surge, has terminated about 110 workers.
Steelback, brewer of 11 brands, decided to close its small Tiverton brewery in central Ontario until the end of March because inventories can meet demand. It has cut more than 20 jobs there.
The company is also trying to sell a small Quebec brewery and D’Angelo Brands has closed a restaurant called Mamma D’s.
