Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, January 16. In today's briefing, Stoli Group is looking to convert the chapter 11 cases of its U.S. units Stoli Group USA and Kentucky Owl to chapter 7 liquidation. And Del Monte Foods said it has agreed to sell nearly all of its businesses to three buyers through a court-supervised auction.

The WSJ Pro Bankruptcy newsletter is taking a break in observance of Martin Luther King Jr. Day and will return on Tuesday, January 20. 

Stoli Group filed to convert two of its U.S. companies from chapter 11 to chapter 7 bankruptcy after the company failed to reach a restructuring agreement with its senior lender.

Control of Stoli Group USA and Kentucky Owl will be transferred to a court-appointed trustee, who will oversee the chapter 7 liquidation process, the company said Thursday. Other companies affiliated with the spirits maker, including Louisiana Spirits, SPI Spirits and global production facilities, are unaffected by the bankruptcy proceedings and continue normal operations, the company says.

The maker of Stoli vodka initially filed for chapter 11 protection in November 2024, but the company said it was unable to reach a deal with its senior lender that would preserve Stoli Group USA and Kentucky Owl.

In November, a bankruptcy judge rejected Stoli's chapter 11 restructuring plan because it relied on using its more than 35,000 barrels of Kentucky bourbon to pay down its bank debt. The judge said he doubted the value of the bank's collateral in a sluggish market oversaturated with inventory.

The company said it believed there was sufficient inventory of Stoli brands in the U.S. market to supply consumer demand for the foreseeable future. The global business, Stoli Group said, will operate normally with production facilities and distribution networks undisrupted by the bankruptcy case.

A hearing to review the conversion request is scheduled for later this month.

—Amira McKee

• Earlier: A sluggish Kentucky bourbon market is taking its toll on distilleries, derailing a turnaround plan for one spirits maker and driving others to bankruptcy.

Del Monte Foods said it has reached agreements to sell substantially all of its businesses to three buyers through a court-supervised auction.

The packaged-food maker, a U.S. unit of Del Monte Pacific, said Thursday that Fresh Del Monte Produce, B&G Foods and Pacific Coast Producers were selected as winning bidders for different parts of its operations.

Fresh Del Monte Produce will buy the vegetable, tomato and refrigerated fruit businesses for $285 million, plus assumed liabilities, including global ownership of the Del Monte brand and related intellectual property, subject to existing licenses.

B&G Foods will acquire the broth and stock business, including the College Inn and Kitchen Basics brands, for about $110 million in cash, subject to inventory adjustments and assumed liabilities.

Pacific Coast Producers will purchase the shelf-stable fruit business assets, excluding production assets, with rights to the Del Monte and S&W brands in the U.S., Puerto Rico and Mexico. Terms weren't disclosed.

The sales, subject to bankruptcy court approval, are expected to close by the end of the first quarter. A hearing is scheduled for Jan. 28. 

—Connor Hart

Under Armour announced three executive leadership changes focused on marketing and product as the latest move in the retailer's turnaround strategy.

Kara Trent was named chief merchandising officer, where she will manage the product line, assortment and channel segmentation. Yassine Saidi, who has been serving as chief product officer, will move into a senior adviser role focused on design and creative continuity. The goal is to drive better category performance and align with consumer demand. Under Armour's turnaround strategy includes cutting out some products to focus on the company's core items, as well as restructuring operations to save costs.

—Katherine Hamilton

JPMorgan is building out a new team inside its investment bank to help companies raise private capital as an alternative to going public, a sign that America’s biggest bank thinks the private markets will remain dominant even with some mega IPOs expected later this year.

The public stock markets just aren’t what they used to be. There has been a general decline of initial public offerings while more and more companies are opting to raise money from big investors and remain private. Private-equity firms have also been holding on to their portfolio companies for longer, often transferring them into new “secondaries” funds instead of selling to another firm. And institutional investors are intensely focused on the private markets and have raised huge sums to invest there.

Paulson echoed several of her colleagues who have also vouched for Powell’s integrity and leadership this week. Those colleagues were divided at the end of last year over how to set rates, with Powell facing growing opposition to the rate cuts that he led his colleagues to make.

For now, Paulson suggested that she shares the prevailing view that there is no hurry to cut rates again. Paulson will become a voter on interest rates this year and supported the Fed’s move to cut its short-term benchmark rate at its last three meetings, most recently in December to a range between 3.5% and 3.75%.

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