Food52’s bankruptcy auction in a Delaware court concluded by splitting the once-integrated content-to-commerce company into three separate pieces, marking the end of a years-long unraveling for a business that was valued at more than $300 million just four years ago.
The core Food52 media business will be acquired by America’s Test Kitchen for roughly $10.3 million, according to court filings, while the home goods brand Schoolhouse was sold to Troy-CSL Lighting for $2.2 million and the heritage tabletop brand Dansk went to Form Portfolios for $250,000.
After transaction fees, the Food52 purchase price equates to roughly $9.9 million. The purchase was first reported by Business of Home. The deal also includes the cancellation of $3.42 million in debtor-in-possession financing provided by America’s Test Kitchen during the bankruptcy process.
Together, the transactions value the three businesses at about $12.75 million, a fraction of the valuation Food52 received in 2021 following investments from private equity firm The Chernin Group.
From stalking horse to winning bid
America’s Test Kitchen first emerged as the leading bidder in January, when it agreed to provide emergency financing to keep Food52 operating during a 35-day court-supervised sale process. That financing gave the company a priority position in the auction as the stalking horse bidder.
In the final results, the buyer is listed in court documents as F52 LLC, an acquisition vehicle for America’s Test Kitchen.
The structure of the transaction reflects the dynamics of a distressed sale. Of the roughly $10 million purchase price for Food52, about $3.42 million represents debt forgiveness tied to the bankruptcy financing, leaving an estimated $6.5 million to $7 million in cash flowing to the seller.
