WanaBana Files For Bankruptcy After Major Recalls

WanaBana currently owes $26 million to creditors, but only has an estimated $500,000 to $1 million in assets.

Applesauce producer WanaBana has filed for Chapter 7 bankruptcy.

Chapter 7 differs from Chapter 11 as it is known as “liquidation” bankruptcy since there is no plan to restructure the company or any plans for repayment. Instead, the company plans to sell off assets to pay off their debts.

WanaBana currently owes $26 million to creditors, but only has an estimated $500,000 to $1 million in assets.

Filing for bankruptcy comes after a major recall in November of last year that covered three of their applesauce products that contained cinnamon. It was discovered the products were contaminated with lead.

The recalled pouches have been linked to dozens of illnesses in U.S. children with the FDA reporting 90 confirmed cases but the full investigation is still ongoing.