Florida Food Products is seeking advice from Evercore and Weil Gotshal as the company grapples with dwindling liquidity and soft performance, according to sources.

Meanwhile, certain lenders banded together with Paul Hastings and signed a co-op pact, sources said.

The Ardian-backed company has a $50m revolver that will become current in October this year, and its longer-dated maturities are hovering in distressed levels. Quotes on its $353m term loan B due 2028 are at 70.50 cents on the dollar, while its second lien loan due 2029 is at 47.50 cents, 9fin data shows.

As of Q1 25, Florida Food had $5m in revolver availability and $27m of cash, up from $10m at the end of 2024, S&P analysts wrote on 18 June. The company boosted its liquidity after it drew $29m on a new $35m facility backed by accounts receivables and got $8m of proceeds from a sale-leaseback deal of its manufacturing facility, according to the rating agency.

Florida Food will likely pursue a near-term restructuring as it is expected to exhaust its liquidity in the next six to nine months, S&P said. The company is also facing higher risk of a payment default as its earnings were hit by softer demand and higher costs due to tariffs and execution missteps from previous management.

Its Q1 sales fell 19% while S&P-adjusted EBITDA slumped 40%, the rating agency said.

In May, the company appointed Todd Werpy to its board of directors as it sought to expand its clean label unit. Based in Lake Mary, Florida Food provides ingredients, concentrates and powders for the food and beverage industry.

Ardian declined to comment. Representatives at Florida Food, Evercore, Weil Gotshal, and Paul Hastings did not respond to requests for comment.