On September 28, 2026, the U.S. Bankruptcy Court for the District of New Jersey confirmed FreshRealm, Inc.’s amended joint chapter 11 plan. The plan provides for a wind-down and liquidating trust following the sale of FreshRealm’s Blue Apron-related operations to Misfits Market. The debtors reported that the sale closed on June 4. The confirmation order makes plan effectiveness conditional on satisfaction or waiver of specified requirements; it does not itself establish that the effective date has occurred.
U.S. Bankruptcy Court for the District of New Jersey
Case Number
26-14656
Petition Date
April 27, 2026
Confirmation Date
September 28, 2026
Case Snapshot
What the confirmed plan provides
The confirmation order approves a plan to wind down the debtors’ businesses, liquidate remaining assets and establish a liquidating trust. On the effective date, liquidating-trust assets and specified retained causes of action are to vest in the trust, while plan-administration assets vest in the wind-down debtors. The trust will administer general unsecured claims, pursue its retained causes of action and distribute recoveries to beneficiaries.
The order requires the wind-down debtors to file and serve a confirmation and effective-date notice no later than ten business days after the effective date. That requirement does not establish the effective date or a final recovery amount.
Holders of allowed general unsecured claims are to receive pro rata liquidating-trust interests, unless they agree to less favorable treatment. The plan allows first-lien claims of $34,955,008.32 and second-lien claims of $116.8 million, with distributions subject to the plan’s settlements and waterfall. The first-lien allowance excludes first-lien debt rolled into the DIP facility.
The first-lien deficiency claim is treated as a general unsecured claim subject to the Unsecured Priority Threshold. That threshold requires other allowed general unsecured creditors to receive aggregate distributions equal to 4% of their allowed claims before the first-lien deficiency claim participates. It is a distribution-priority provision, not a guaranteed recovery. The second-lien deficiency claim is to be waived on the effective date. Existing equity interests are to be cancelled on that date without a distribution. These provisions establish claim treatment, not realized recovery percentages.
The Misfits sale and Blue Apron settlement
FreshRealm entered chapter 11 seeking to transfer its Blue Apron-related production and fulfillment business while resolving disputes under its agreement with Blue Apron. On June 2, the court approved the Blue Apron settlement, asset sale to Misfits Market and transition services agreement. The debtors’ June 30 filing reports that the sale closed and the transition services agreement became effective on June 4.
The court-approved asset purchase agreement specifies $1 in cash plus assumption of specified liabilities, subject to a working-capital adjustment. The $1 figure alone does not describe the transaction’s full economics. The transition services agreement provided for FreshRealm to supply operational, production and administrative services during the handoff to Misfits Market. The confirmed plan separately addresses the debtors’ remaining obligations and assets.
Blue Apron alleged food quality, safety and operational breaches of its agreement with FreshRealm. It issued a termination notice in December 2025, while FreshRealm disputed the notice’s validity under the agreement’s notice-and-cure terms. Those were contested positions described in the debtors’ declaration, rather than court findings of a contractual breach.
Why FreshRealm filed
FreshRealm and four affiliates filed chapter 11 petitions on April 27, 2026. According to the first-day declaration, the debtors experienced five withdrawal or recall incidents associated with Listeria monocytogenes in 2025. The declaration says the incidents disrupted operations, caused customer attrition and depleted liquidity.
Walmart, which had accounted for more than 20% of revenue, informed FreshRealm that it would cease its customer relationship in January 2026. The declaration says FreshRealm’s San Clemente, California, and Indianapolis, Indiana, facilities wound down at the end of that month.
At filing, the debtors sought a $63 million debtor-in-possession facility. The DIP motion identifies Birch Grove Investments LLC or its affiliates, funds or designees, and FaraNord (US) IV Pte Ltd as the proposed lenders. The requested facility comprised $15 million in postpetition new-money commitments, $3 million in prepetition protective advances to be converted into DIP debt, and $45 million in prepetition debt to be rolled into the facility.
The court’s April 29 interim order permitted disbursement of up to $10 million in postpetition new-money loans, subject to the financing conditions. The requested facility size and interim authorization do not establish the amount ultimately drawn.
Selected case milestones
Date
Milestone
April 27, 2026
FreshRealm and four affiliates file chapter 11 petitions and seek approval of the Blue Apron settlement and Misfits transaction.
April 29, 2026
The court enters an interim financing order.
June 2, 2026
The court approves the Blue Apron settlement and Misfits sale.
June 4, 2026
The Misfits sale closes, according to the debtors’ June 30 filing.
September 28, 2026
The court confirms the amended joint liquidating plan.
Selected Case Milestones
Frequently asked questions
Did the court confirm FreshRealm’s plan?
Yes. The court entered the confirmation order on September 28, 2026. The order makes effectiveness conditional on satisfaction or waiver of the plan’s requirements. Confirmation alone does not establish that the effective date has occurred or distributions have begun.
Did Misfits Market buy the Blue Apron-related business?
The court approved the transaction on June 2, and the debtors reported a June 4 closing. The agreement specified $1 in cash plus assumed liabilities, subject to a working-capital adjustment.
What does the plan provide for unsecured creditors?
Holders of allowed general unsecured claims are to receive pro rata liquidating-trust interests, subject to the plan’s terms. The 4% Unsecured Priority Threshold governs participation by the first-lien deficiency claim; it does not guarantee a 4% recovery. The confirmation order does not establish the ultimate cash value of the trust interests.
Sources
confirmed FreshRealm, Inc.’s amended joint chapter 11 plan /documents/25bdf176-85db-4552-ae7a-77965b334bed/
reported that the sale closed on June 4 /documents/626a4a77-2fcb-4f8e-8aa4-a0f4e5daca4b/
approved the Blue Apron settlement, asset sale to Misfits Market and transition services agreement /documents/e0a06272-226f-49c9-8ada-05f4e288f902/
$63 million debtor-in-possession facility /documents/b4afaf6c-a394-4b2a-a3b5-34f769768751/
April 29 interim order /documents/d1fb501e-569c-44a9-902d-f594beb64ab3/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.