Any Interest in Certified Allergen Free Granola Manufacturer

Would anyone have any interest in a “distressed” bulk granola manufacturer in the Midwest? The company produces granola in a pharmaceutical grade/standards facility that is certified nut free and the granola is certified free of the top 14 allergens. They currently sell it in bulk as an ingredient via e-commerce channels.

The company was selling to school districts pre-COVID, but the pandemic effectively halted their progress and now they would be a “turn-key” restart with both of the current owners willing to stay on and run the company for a continued equity stake.

They moved the business to the Midwest from the Mountain West and bought the business out of bankruptcy in###-###-#### They have $330,000 of debt with a local credit union (~$5,000/month debt service) and 30 months remaining on a $5,500/month lease (expires 1/21/2027).

Capacity: they can produce 25lb bulk bags (sell online) or smaller sample packs even down to 4 ounce packets. They could run 1MM bulk bags per month or thousands of smaller bags. They have had offers from Walmart and Sam's Club, but cannot manufacture enough to support the contract. Currently, they have less than 10 employees and only run one shift per day.

Also, they do not have a bar machine ($500,000 cost), so they are just producing granola flakes at the moment.

The company could use capital, equipment, and experience. Both happy to sell 51% plus and stay on to operate - think best scenario could be a partnership with or purchase with someone that can leverage woman-owned, minority-owned, veteran-owned opportunities to get contracts.

The company is something between an ingredient supplier and private label manufacturer, which is their preference along with growing their brand.