Professional Veterinary Products Ltd. of Omaha, Neb., reported Friday that it has filed for bankruptcy to facilitate the sale of its assets. The company’s subsidiaries, ProConn LLC and Exact Logistics LLC, also filed voluntary petitions for relief under Chapter 11.
Earlier in August, Professional Veterinary Products reported that it had “encountered significant and material financial challenges … primarily as a result of macroeconomic factors and a general downturn in the economy.” This included a drop in gross profit margins and in sales in its core business segments, according to the company.
Before the filing Friday, Professional Veterinary Products said it had evaluated alternatives, including an overall reorganization of its business operations and a sale of the business. At this point, however, the company is pursuing a sale of substantially all its assets under a Bankruptcy Court supervised auction and sale process.
The board of directors and the management said they “believe that this course of action will be in the best interests of all the stakeholders and will maximize value for all of the constituents.”
Professional Veterinary Products will continue to operate its business as a debtor-in-possession.