High Ridge Brands Co., the owner of brands like Zest soap and VO5 shampoo, filed a voluntary Chapter 11 bankruptcy in Delaware with plans to sell itself in a court-supervised process.

WHO: High Ridge Brands was formed in 2010 to acquire the rights to Zest for the US, Canada, and certain other territories, from Procter & Gamble and to serve as a platform for strategic acquisitions in the personal care segment. The Stamford, Connecticut-based company is owned by the private equity firm Clayton, Dubilier & Rice. Much of the company’s portfolio is sold through discounters like Dollar Tree, Walmart, and 99 Cents Only stores.

WHY: High Ridge blamed its bankruptcy in part on a soap supplier who increased prices by 60% and then failed to deliver enough product on time, hurting sales, Chief Restructuring Officer M. Benjamin Jones of Ankura Consulting Group, LLC, said in court papers.

DETAILS:

• High Ridge Brands filed for Chapter 11 protection in US Bankruptcy Court in Wilmington, Delaware, after a pre-bankruptcy marketing process that began in September failed to generate a stalking horse or lead bidder for its assets.
• The company’s UK business operations are not included in the bankruptcy filing.
• The company listed as much as $500 million in assets and at least $500 million of liabilities in its bankruptcy petition.
• High Ridge said in a statement it’s in active discussions with potential bidders and has $20 million committed for a bankruptcy loan from current lenders.
• In October, High Ridge skipped payments on its debts and won forbearance from lenders, giving the company time to evaluate its options, according to an S&P report.
• The company owes senior lenders $263 million and unsecured noteholders $261 million, court papers show.
• High Ridge expects to continue paying its suppliers in full and maintain on-time deliveries to customers, according to an emailed statement to Bloomberg.