Cali’Flour Foods Goes Up For Sale
Cali’Flour Foods is heading to the auction block.
According to a press release issued today, the cauliflower-based frozen food company will go to a public sale conducted telephonically on September 8 at 12 pm CT by GemCap Solutions, LLC, an asset-based lender that provides loans to low and middle market businesses.
All property and assets of the cauliflower-based frozen food company will be auctioned, including the inventory, accounts receivable, production machinery located at its Castroville, Calif. headquarters, as well as trademarks and trade names, intellectual property, and domain names, among other remaining assets.
The sale will be conducted in order to “foreclose the lien and security interest” held against Cali’flour by GemCap Solutions. The assets may be sold as separate or a combination of the assets, or as one single lot, the release notes. Cali’flour previously received a loan from GemCap using its equipment as collateral, a source told NOSH, and despite looking for other financing, the company was unable to find a new partner.
Founded in 2015 by Amy Lacy, Cali’flour sells a range of cauliflower flour-based frozen food items, including pizza, pizza crusts, flatbread, lasagna and enchiladas. The food company acquired its copacker in 2020 and continues to self-manufacture its products.
In March, Cali’flour announced its acquisition of Mikey’s, a plant-based, frozen food maker, a move it said would allow it to further utilize its production facility with the added manufacturing demands. Mikey’s was previously owned by innovation lab and private equity firm Factory LLC, which became an equity partner in Cali’flour following the acquisition.
Boulder-based equity firm Sunrise Strategic Partners is Cali’flour’s majority shareholder and helped incorporate Mikey’s into its business. Sunrise also led the California-based food brand’s most recent fundraise back in 2019, contributing an undisclosed sum, alongside a $3 million convertible note provided by CircleUp Growth Partners.
After Cali’flour’s last fundraise, the company also welcomed some new executives to its team including Mike Anderson, formerly of Factory, as CEO, and Patrick Hughes, former VP of commercial operations for Sunrise, as CMO. Anderson retired in 2020, passing the torch to former Boulder Brands president, Jason Agnew, who continues to hold the CEO title.
According to a post on Linkedin, Cali’flour has begun to reduce its workforce with at least one former employee noting today his time at the company “has come to a close.’
Although GemCap refers to itself as an asset-based lender, it has also acquired food businesses during its 15 year lifespan. In 2010, it bought F&F Foods and worked to turn around the business. In the past year, GemCap has brought various food companies to auction including chocolate maker Vosges Haut-Chocolat and coffee roasting company CLR Roasters.
