Part 12/15:
Eventually, Walmart relented, and Vassic adjusted the deal to sell half-gallon jars at a slightly higher price. Still, the damage was done: profits remained thin, and the brand’s reputation was further compromised.
The Collapse and Bankruptcy
Despite these efforts, the financial strain proved insurmountable. With mounting debts, high-interest payments, and falling margins, Vassic could no longer sustain operations. The company filed for bankruptcy in January 2001, less than three years after the gallon jar fiasco began.
In a common bankruptcy practice, Vassic’s assets were auctioned off, and the assets were acquired by H.J. Heinz, the ketchup and processed foods giant, for just $195 million—far below the original valuation and debt load.