Hearthside Food Solutions, a contract manufacturer known for producing a wide range of foods for major brands, filed for Chapter 11 on Friday. The company made its decision after facing allegations of child labor, which arose from a New York Times article claiming that migrant children were working in unsafe conditions while producing Chewy granola bars and packing bags of Lucky Charms and Cheetos at Hearthside’s processing plant in Grand Rapids, Michigan.
The company stated that they have never knowingly employed underage labor in their facilities and have severed connections with third-party staffing agencies.
Hearthside pointed out that inquiries into the company have not led to any penalties and that they were not the cause of the bankruptcy. Hearthside intends to move forward smoothly, reorganize its finances, and exit bankruptcy by early next year.
CEO Darlene Nicosia stated, “We have taken decisive action across our company to put our past challenges behind us, and are encouraged by the improvement we have already seen.”
Hearthside employs 12,000 individuals at 28 locations.