Merisant files for bankruptcy protection

The Chicago-based company and five affiliates filed for protection from creditors with the US Bankruptcy Court in Wilmington, Delaware.

Merisant had seen market share decline in recent years amid competition from rival sweeteners, including Splenda, which is made by Tate & Lyle and marketed by McNeil Nutritionals, a unit of Johnson & Johnson.

Despite sales totaling $277m, Merisant said it had $137.1m of debts as of 30 November 2008, while its Merisant Co unit had $331.1m of assets and $560.7m of debts on that date, court filings show.

Paul Block, Merisant’s chief executive, said in a statement that the company plans to convert a “significant amount” of debt to equity in the bankruptcy process, and plans no job cuts.

Whole Earth Sweetener Company, a wholly owned subsidiary of Merisant, has recently launched PureVia (an all-natural, zero-calorie, stevia-based sweetener) in partnership with PepsiCo.

Source: Reuters