Herbal extracts supplier Hauser has filed for bankruptcy under the Chapter 11 provision.
The move, which includes its subsidiaries Botanicals International Extracts, Hauser Technical Services, and ZetaPharm, does not as initially stated include the BI Nutraceuticals business, which supplies some services to the company.
Chapter 11 allows a company to continue business while developing a reorganization plan. Kenneth Cleveland, president and chief executive officer of Hauser, said that despite reduction in costs and increased manufacturing efficiencies over recent months, ultimately Hauser needs a greater equity base and access to permanent capital.
"We believe this bankruptcy filing will afford the company the time and process to arrange those elements for the benefit of all interested parties," said Cleveland.
A press release issued last week mistakenly included Zuellig Botanicals (ZBI), which does business as BI Nutraceuticals, as one of the businesses involved in the bankruptcy filing. BI Nutraceuticals, a privately owned company, has since issued a statement to correct the previous errors. The company provides purchasing and sales and marketing services to Hauser's dietary supplements businesses.