Customers are shocked as celeb baby brand with ties to Walmart goes bankrupt - but insists they've '
A CELEBRITY-BACKED baby brand has filed for bankruptcy but assured its customers that business will go on as usual.
Hello Bello, backed by Kristen Bell and Dax Shephard, sells products like diapers, baby wipes, sunscreen, and ointments at Walmart.
On Monday, the company filed for bankruptcy to facilitate the sale of the company to Hildred Capital Management, a healthcare-focused private equity firm.
Fans of the brand were disappointed to hear the news, saying Hello Bello had "great products" and that it was a "bummer."
Luckily for them, Hello Bello told fans that they had nothing to worry about.
"Have no fear about your baby's rear! We've still got it covered," it wrote on X, formerly known as Twitter.
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In a press release, they added: "We are open for business, and we intend to continue offering our award-winning products as usual. All products are still available for purchase and all bundling and subscription services will continue to ship as scheduled.
"Our commitments to quality, affordability, sustainability, inclusivity, and giving back will never waiver. We’re actually thrilled to join forces with Hildred Capital Management because our values are aligned. There will be no compromising – quite the opposite. We see a bright future of growth and progress on all of the things we believe in."
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Hello Bello has at least $100 million in both assets and liabilities, according to a bankruptcy petition reviewed by Bloomberg.
The brand owes $22 million to its largest creditor, a tissue paper supplier.
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Chief executive officer, Erica Buxton, said the company experienced negative impacts of higher shipping costs, increased purchase prices, and delayed raw material shipments caused by the COVID pandemic.
Despite cost-cutting efforts like requiring direct-to-consumer customers to pay for shipping and reducing its corporate workforce by 20%, bankruptcy remained as Hello Bello's best option.
“Given macroeconomic trends, including inflation and increased shipping costs, we believe that this course of action is the best path forward to ensure that Hello Bello continues to bring families the highest quality and most environmentally friendly products at affordable prices,” Buxton said in a statement.
The sale is expected to be finalized in a few months.
A fruit producer that also serves Walmart recently filed for bankruptcy as well.
Plus, see which popular clothing store filed for bankruptcy in California.
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