The company behind the Bang Energy drinks brand, Vital Pharmaceuticals Inc. (VPX), has filed for bankruptcy.
In a press release Oct. 11, the company announced it is pursuing Chapter 11 protection in the Southern District of Florida and will use the time to reposition for future growth.
VPX Sports is the maker of Bang energy drinks, among other consumer products. The company said "all business operations will continue, with improved product delivery and service to retailers through VPX/Bang Energy’s newly constituted legacy distribution network consisting of more than 269 best-in-class distributors."
VPX’s Chapter 11 efforts are being supported by $100 million of additional financing from VPX’s syndicate lenders, a move that is meant to help ensure operations continue uninterrupted during the restructuring process.
“We are excited about our future, and particularly the new distribution system that we have spent the better part of this year assembling," Jack Owoc, CEO and founder of VPX, said in a statement, adding the company aims to regain lost market share. “We are coming like a freight train and cannot be stopped.”
The company recently lost a US$293-million lawsuit for false advertising to rival Monster Beverage Corp. According to reports, court documents reveal that Bang’s parent company owes more than $500 million to Monster Beverage Co., as well as Orange Bang, a small California juice maker. It owes another $115 million to PepsiCo Inc., its former U.S. distributor.
Bang once dominated about 10% of the energy-drink market, but now market share sits just above 6%. Owod says the goal is to emerge from bankruptcy positions to grow and "progress vigorously beyond 20% market share in energy drinks."