Private Equity Firm Saves Avondale-Based Mushroom Company from Bankruptcy with $5 Million Buyout

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tray of mushrooms
Image via the U.S. Department of Agriculture.

Avondale-based Cardile Mushrooms has been bought out of bankruptcy by an affiliate of New York-based Sandton Capital Partners for $5.09 million. Natalie Kostelni covered the save for the Philadelphia Business Journal.

The sale of the company’s operations included four tracts of land and all assets, according to Paul J. Winterhalter, an Offit Kurman attorney representing Cardile Mushrooms.

The agribusiness will continue to operate under its new owners, with most of the employees staying on.

“It’s a relatively positive outcome to a difficult situation,” said Winterhalter. “The large, strong firms survive, and the more family-oriented operations can’t compete. They don’t have the financial resources to maintain the capital equipment to run the business.”

The only remaining loose end is around $1 million that needs to be collected and given to the lender.

“The collection of the receivables will be fully consummated by early December or the end of the year, and then we will see how the case will wind down,” said Winterhalter.

Cardile filed Chapter 11 last year after being unable to make loan and other payments. The company’s situation was exacerbated by a reduction in business during the pandemic.

Read more about Cardile Mushrooms in the Philadelphia Business Journal.

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