Case Summary: Harvest Sherwood Chapter 11

Business Description

Headquartered in Detroit, MI, Harvest Sherwood Food Distributors, Inc., along with its affiliated Debtors⁽¹⁾ (collectively, "Harvest Sherwood" or the "Company"), was, prior to its April 2025 shutdown⁽²⁾, the largest independent wholesale food distributor in the United States. The Company generated approximately $4 billion in annual revenue by distributing a wide array of food products, including beef, pork, poultry, seafood, deli items, and bakery products.

• Harvest Sherwood served a diverse customer base of over 6,000 clients, including independent food retailers, regional and national grocery chains, ethnic grocers, foodservice distributors, and cruise lines.
• The Company operated 14 primary distribution centers with a combined capacity to ship more than 32 million pounds of food weekly.
• Its in-house logistics arm, SFD Transportation, operated a fleet of approximately 300 trucks.

Harvest Sherwood employed around 1,500 individuals before ceasing operations. The Company prided itself on its ability to service niche markets and provide tailored product assortments, acting as a crucial link between over 650 suppliers and nearly 3,500 active customers at any given time.

Harvest Sherwood Food Distributors, Inc. and its affiliates filed for Chapter 11 protection on May 5, 2025 (the "Petition Date"), in the U.S. Bankruptcy Court for the Northern District of Texas, reporting $1 billion to $10 billion in assets and $500 million to $1 billion in liabilities.

⁽¹⁾ For a complete list of Debtor entities, see organizational structure chart below.
⁽²⁾ The Debtors ceased operations by April 21, 2025, following WARN notices issued in February 2025 (Dkt. 14).

Corporate History

Harvest Sherwood Food Distributors was formed in April 2017 through the merger of two prominent family-owned food distribution businesses: Sherwood Food Distributors of Detroit, MI, and Harvest Food Distributors (originally Harvest Meat Company) of National City, CA.

• Sherwood Food Distributors: Founded in 1969 as Regal Packing Co. by Earl Ishbia and Alex Karp, Sherwood grew into a major independent meat distributor in the Midwest and Southeast, operating five distribution centers and shipping approximately 20 million pounds of product weekly.
• Harvest Food Distributors: Established in 1989 by Frank Leavy and his sons, Harvest Meat Co. focused on supplying independent food retailers on the West Coast. By 2017, it operated 10 distribution centers, serving over 6,000 customers.

The 2017 Merger

• The merger created the largest independent wholesale food distributor in the U.S., with approximately $4 billion in revenue and 14 distribution centers nationwide. The combined entity was headquartered in Detroit.
• Leadership was shared, with Jay Leavy (Harvest) and Earl Ishbia (Sherwood) as co-CEOs, and Kevin Leavy and Jason Ishbia as co-Presidents.

Corporate Organizational Structure

Operations Overview

Prior to its cessation of operations, Harvest Sherwood managed a vast nationwide distribution network, integrating sourcing, warehousing, and logistics to serve a diverse customer base with a comprehensive product portfolio.

Distribution Network and Logistics

• The Company operated 14 primary distribution centers, including locations in Detroit, MI; Cleveland, OH; Atlanta, GA; Miami and Orlando, FL; Portland, OR; and Denver, CO, among others.
• These centers featured refrigerated, frozen, and dry storage, serving as regional supply nodes.
• Its subsidiary, SFD Transportation Corp., managed an in-house fleet of over 300 tractors and trailers, handling fresh produce, meat, and refrigerated goods. This provided control over deliveries, often multiple times per week.

Product Portfolio

• The Company distributed an extensive range of products, primarily proteins (beef, pork, poultry, lamb, veal, seafood) and other perishable items like deli products, bakery goods, and some produce.
• Inventory included thousands of SKUs across a wide range of food categories, encompassing both commodity and branded items, including national, natural, organic, and ethnic food brands.

Customer Base and Market Segments

• Harvest Sherwood served over 6,000 accounts, including:
  • Independent retailers and regional retail chains.
  • National specialty chains (such as Sprouts Farmers Market for meat and seafood until early 2025).
  • Distributors, further processors, and foodservice entities, including cruise lines.
• A key value proposition was providing smaller retailers access to large-scale distributor buying power and assortment, with frequent deliveries acting as an "extended warehouse."
• The Company had a strong presence in niche markets, such as urban ethnic grocers, supplying specialized products and marketing support.

Supply Chain

• Harvest Sherwood sourced products from major food producers, with top trade creditors as of the Petition Date including National Beef Packing Co. and Tyson Foods.
• The business operated on low margins and high volumes, making supplier credit terms crucial. A credit rating downgrade in January 2025 impacted these terms.

Prepetition Obligations

Top Unsecured Claims

Events Leading to Bankruptcy