Bang Energy Owner Files For Bankruptcy
Vital Pharmaceuticals (VPX), the company operating behind the Bang Energy drinks brand has filed for bankruptcy. In a press release on Monday, VPX confirmed it was pursuing Chapter 11 protection in the US state of Florida, a move it claimed would allow it to reorganise and regain market share from domestic rivals.
Recently, the company lost a $293 Mln lawsuit for false advertising to rival Monster Beverage Corp.
The company statement read, “This filing is a restorative action to help the company recover from recent challenges, including multiple lawsuits that impacted the Company’s short-term outlook.”
“VPX intends to use the Chapter 11 process to recapitalise and emerge from bankruptcy well-positioned to continue its rapid growth in the beverage market,” it added.
Under the terms of a Chapter 11 filing in the US, the debtor is allowed to continue business operations (subject to the court’s jurisdiction) whilst it reorganises its affairs and confirms a plan with its creditors. VPX said on Monday that the filing would have “no impact (on) product availability, customer orders or operations”.
As part of the restructuring process, VPX has stated its intention to create a new “decentralised direct store distribution (DSD)” network for the Bang Energy brand, which it hopes will enable it to recover to its “pre-Pepsi meteoric annual success”.
The brand was earlier distributed by the CSD giant until a spat between the two companies ended with VPX CEO Jack Owac saying that PepsiCo “engaged in a premeditated plan to destroy Bang from day one”.
Owoc said in a statement, “We are excited about our future, and particularly the new distribution system that we have spent the better part of this year assembling. Utilising our new state-of-the-art DSD will allow Bang Energy to get back to our pre-Pepsi meteoric annual success of several hundred percent year over year growth.”
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