PEMBROKE PINES, FLA. — Vital Pharmaceuticals, Inc. (VPX) has filed a voluntary petition under the Chapter 11 Bankruptcy Code in the Southern District of Florida.
The Bang Energy producer said the filing will help the company navigate financial challenges arising from the development of its new decentralized direct-store distribution network and several lawsuits with groups such as Monster Energy and PepsiCo, Inc. An additional $100 million of financing is being provided by VPX’s syndicate lenders to maintain its operations during the restructure.
“I know we will successfully emerge from this process as a stronger company,” said Jack Owoc, chief executive officer of VPX. “This reorganization will position our company for future growth. The knowledge we gained over the past several years has been transformative.”
VPX’s distribution network will allow Bang to reach 95% of the nation and capitalize on its market share that shrank nearly $680 million under its distribution deal with PepsiCo, according to the company. The deal, which began in 2020, became the subject of litigation soon after its inception and is expected to officially end sometime in October 2022.
“The primary objective of our new DSD network is to regain the massive market share we earned prior to Pepsi and continue to achieve double digit growth and progress vigorously beyond 20% market share in energy drinks,” Mr. Owoc said.