Emil’s Produce Corp. files Chapter 11 bankruptcy

Brooklyn produce company reports $1.4 million in liabilities, with high concentration of financial debt

Emil’s Produce Corp., BB #:302400 Brooklyn, NY, filed for Chapter 11 bankruptcy protection on August 12, 2026, in the U.S. Bankruptcy Court for the Eastern District of New York.

Court filings show a sizable imbalance between the company’s assets and liabilities. Emil’s Produce reported $175,733 in assets against $1.41 million in total liabilities, including approximately $1.31 million in nonpriority unsecured claims.

The company is represented by the Law Offices Alla Kachan, P.C., located at 2799 Coney Island Ave., Suite 202, Brooklyn, NY. Contact information is as follows:  (718) 513-3145 or alla@kachanlaw.com.

The Creditor Profile

What makes this bankruptcy noteworthy is not the amount owed or the disparity between assets and liabilities, but the composition of the creditor base.

Produce-company bankruptcies often list produce vendors, transportation providers, and other operational suppliers among their largest unsecured creditors. Emil’s filing looks different.

Its unsecured creditor schedule is predominately banks, credit-card obligations, government-backed financing and specialty or alternative finance providers, with several claims identified as disputed. 

The filing provides an interesting look at how businesses may fund operations when liquidity becomes strained. Companies facing financial pressure may turn to a combination of traditional lenders and alternative financing sources for additional working capital. While these options can provide needed liquidity, multiple financing obligations may also signal increased leverage and should be considered when evaluating a company’s overall financial condition.

Limited Operating Assets

The petition schedules provide additional perspective. The company reported gross business revenue of approximately $2.51 million in 2025, compared with approximately $2.57 million in 2024. 

Emil’s reported no accounts receivable and no inventory as of the filing date. Its assets consisted primarily of $5,233 in cash and cash equivalents and two delivery vehicles and other equipment valued at a combined value of $170,000.

Despite the gap between reported assets and liabilities, the petition indicates that the company expects funds to be available for distribution to unsecured creditors.

A Credit Risk Reminder

The Emil’s Produce bankruptcy highlights the importance of evaluating credit risk from a broad perspective. While trade payment experience remains a critical indicator of financial health, companies may also rely on bank debt, credit cards, specialty financing and other sources of capital that are not readily visible. 

This is why companies that share financial statements demonstrate a level of transparency that builds trading confidences and assurances that you know who you are dealing with.

For produce sellers, effective risk management means looking beyond any single indicator. Trade payment experience, financial condition or claim and legal activity are most valuable when viewed together, providing a more complete picture of a customer’s creditworthiness and ability to meet its obligations.