DOWNERS GROVE, ILL. — H-Food Holdings LLC, the parent company of contract manufacturer Hearthside Food Solutions, has filed for Chapter 11 bankruptcy protection. The process will allow Hearthside to eliminate more than $1.9 billion of its debt and secure $200 million of new capital at exit, according to the company.

Company management said they have “widespread support” from “significant majorities” of its first lien and second lien lenders as well as from unsecured noteholders and equity holders.

“Hearthside has filed a number of customary “first day motions” with the court to facilitate a smooth transition into Chapter 11 and operate without disruption during the process, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring obligations to vendors,” the company said.

To fund operations as it goes through the Chapter 11 process, the company has filed a motion seeking approval of $300 million of debtor-in-possession financing.

“Today’s announcement marks an incredibly important step forward for Hearthside, our valued customers, and our dedicated team as we continue to transform our business for the future,” said Darlene Nicosia, chief executive officer of Hearthside. “With a sustainable capital structure and a significant infusion of new capital to fund our long-term plan, we will be well-equipped to enhance our leadership in the food manufacturing industry as we drive continued innovation and growth.”

Management’s goal is to emerge from Chapter 11 in the first quarter of 2025.

The Chapter 11 filing follows a tumultuous period for the company. Hearthside was featured prominently in a New York Times article in February 2023 alleging the company and many other employers were employing underage migrant children at their plants.