The former largest independent wholesale food distributor in the United States is asking a bankruptcy court for permission to sell off its remaining miscellaneous assets through a streamlined process as it winds down operations.
Harvest Sherwood Food Distributors, Inc. and its affiliated debtors filed a motion on May 16, 2025, seeking approval to sell or abandon "de minimis assets" — including trucks, trailers, dollies, and other equipment — without requiring individual court approval for each transaction. The motion, filed in the U.S. Bankruptcy Court for the Northern District of Texas, proposes a two-tiered approach for selling these smaller assets based on their value.
"Periodic sales of the De Minimis Assets are a necessary element of the Debtors' bankruptcy cases and will benefit the Debtors' estates," the company stated in its filing. "Conducting these De Minimis Asset Sales will streamline the Debtors' bankruptcy cases by eliminating the cost of maintaining nonessential property and generating additional cash."
Prior to filing for Chapter 11 protection on May 5, Harvest Sherwood was a powerhouse in food distribution, generating approximately $4 billion in annual revenue and shipping over 32 million pounds of food weekly to retailers, cruise lines, and food service customers throughout the United States. The company began winding down its operations in February, selling inventory, collecting receivables, and divesting branch operations.
Under the proposed procedures, Harvest Sherwood would be permitted to sell assets valued at $100,000 or less without any notice to creditors or court approval, providing only quarterly reports summarizing these "Non-Noticed De Minimis Asset Sales." For assets valued between $100,001 and $1,000,000, the company would provide five business days' notice to certain parties including the U.S. Trustee, any creditors' committee, the DIP financing agent, and parties with liens on the assets.
"Given the small monetary value of such De Minimis Assets and the Debtors' current operational posture, it would be inefficient and costly to seek court approval every time the Debtors have an opportunity to sell such De Minimis Assets," the motion argues.
The motion also requests authority to abandon assets valued at $25,000 or less when the company determines in its business judgment that the cost of maintaining, relocating, or storing such assets outweighs potential recovery from a future sale. However, the company notes it would remove any confidential customer or employee information before abandoning property.
Sales under the proposed procedures would be free and clear of liens, with any valid liens attaching to the sale proceeds. The company also seeks to provide purchasers with "good faith purchaser" protections under section 363(m) of the Bankruptcy Code, which shields transactions from being undone if a sale order is later appealed.
To support its request, Harvest Sherwood cited numerous precedents, including recent bankruptcy cases where courts approved similar procedures for de minimis asset sales, including Conn's Inc., Zachry Holdings, Inc., and Steward Health Care System LLC, which had thresholds ranging from $2 million to $10 million for streamlined asset sales.
The motion is scheduled for hearing on June 3, 2025, at 1:30 p.m. before Judge Stacey G.J. Jernigan. The bankruptcy case is being administered under Case No. 25-80109 in the Northern District of Texas, Dallas Division. The debtors are represented by Sidley Austin LLP.
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