America's Test Kitchen buying bankrupt recipe site Food52

"Cooking television show America's Test Kitchen has agreed to purchase recipe site Food52, which said it was forced to file bankruptcy after its lender unexpectedly swept cash from its bank accounts. The offer from America's Test Kitchen is worth $6.5 million and will gives Food52 a path out of Chapter 11 under new ownership. The stalking horse bid is subject to better offers should any materialize in the coming weeks."

"But on Dec. 15 Food52's lender Avidbank with no forewarning swept nearly all of the company's cash held at the bank, including the reversal of employee payroll and benefits, as well as funds held in trust to be remitted to the federal government, Badan said. Overnight, the company found itself scrambling for survival, Badan said. Avidbank did end up authorizing the return of cash to cover Food52 employee's payroll and 90% of its health insurance premiums, Badan said."

America's Test Kitchen offered $6.5 million to buy Food52, creating a path out of Chapter 11 and providing immediate cash while remaining subject to higher bids. The stalking horse bid funds operations during the sale process. Food52 had listed itself and other brands for sale and pushed holiday sales around Thanksgiving, Black Friday and Cyber Monday. On Dec. 15 Avidbank swept nearly all of Food52's cash without forewarning, reversing payroll and benefits and seizing funds held in trust for the federal government; it later returned cash to cover payroll and 90% of health insurance premiums. The bank's actions forced most workers to be terminated and left remaining staff working around-the-clock. Food52 struggled after a Covid-era boom due to high operating costs, unfavorable legacy contracts, outdated technology and lack of scalable systems.

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