A big change over the weekend as sales and marketing giant Acosta has filed for Chapter 11 bankruptcy protection. While Acosta Cornerstone, the non-foods foodservice component of parent Acosta has struggled gaining traction, it has been thought that the other retail segments and perhaps especially the retail grocery segments would allow enough running room for the foodservice segment overall to become a key driver at Acosta.
Evidently, it has not been the case.
We have been warning of changes within the hospitality industry – in particular, the non-foods supply part of the hospitality and foodservice industry – and here is just one example. An unfortunate reminder that private equity and venture capital firms are in the money business, not the foodservice or hospitality business.
Here’s the link to the story from Bloomberg News: https://www.bloomberg.com/news/articles/2019-12-01/carlyle-s-acosta-files-bankruptcy-as-marketing-budgets-dry-up
