Multi-Color Corporation, a global leader in prime label manufacturing, filed for Chapter 11 bankruptcy protection on January 29, 2026, in the United States Bankruptcy Court for the District of New Jersey. The company entered bankruptcy with a prepackaged plan of reorganization supported by lenders holding approximately 72.3% of its first lien debt and Clayton, Dubilier & Rice, LLC, the private equity firm that acquired the company in 2021. The restructuring will eliminate $3.9 billion in debt and provide $889 million in new funding while leaving general unsecured creditors unimpaired.
The filing comes after years of industry challenges that reduced the company's revenue from $3.56 billion in 2022 to $3.06 billion in 2025, a 14% decline. Multi-Color operates more than 90 facilities across 25 countries and employs approximately 12,800 people worldwide, including 4,870 in the United States.
Company Background and Business Operations
Multi-Color Corporation traces its origins to 1916, when it was founded as Franklin Development Company in Cincinnati, Ohio. Now headquartered in Atlanta, Georgia, the company manufactures prime labels for major global brands in food, beverage, home care, beauty, automotive, and pharmaceutical industries. The company's operations span more than 25 countries with 39 facilities in North America.
The company provides six main categories of label solutions: Pressure Sensitive Labels, which account for 45% of revenue; Cut & Stack Labels at 19%; In-Mold Labels at 13%; Roll-Fed Labels at 9%; Shrink & Stretch Sleeve Labels at 8%; and RFID-Enhanced Labeling at 2%. Multi-Color employs multiple print technologies including flexography, gravure, offset/lithography, digital, and rotary screen printing.
Multi-Color's growth strategy centered on acquisitions. In 2017, the company acquired the labels division of Constantia Flexibles GmbH. In 2019, it merged with W/S Packaging Group. In October 2021, Clayton, Dubilier & Rice acquired the company and merged it with Fort Dearborn Company. The company continued acquisitions between 2022 and 2024, including Flexcoat, Korsini Packaging, Starport Technologies, and Eximpro.
Events Leading to Bankruptcy
The prime label industry experienced significant volatility beginning in 2021. Following heightened demand at the outset of the COVID-19 pandemic, Multi-Color faced rapid cost inflation and significant raw material and labor constraints between 2021 and 2022 due to market and supply chain disruptions. As these issues subsided, a sustained period of customer destocking caused significant volume declines in demand for the company's products. These industry challenges coincided with uncertainty around tariffs and macroeconomic conditions.
The company's efforts to navigate this volatility overlapped with its integration of Fort Dearborn Company and subsequent acquisitions. In response to challenging industry conditions and hyperinflation, Multi-Color implemented pricing increases between 2022 and 2023 and initiated reductions to headcount and inventory. Management turnover and a lack of quality data-driven insights contributed to the business challenges.
The company's financial performance deteriorated significantly. Revenue declined from $3.56 billion in 2022 to $3.06 billion in 2025. Adjusted EBITDA fell from $598 million in 2022 to $409 million in 2025. As of the petition date, the company had approximately $67 million in cash on hand.
On January 15, 2026, Multi-Color elected not to make a $36.2 million interest payment due on its 2027 Unsecured Notes. The 30-day grace period for this payment expires on February 14, 2026.
Prepetition Capital Structure
As of the petition date, Multi-Color had approximately $5.9 billion in aggregate outstanding principal debt. The secured debt totaled $4.788 billion and included a $445 million ABL Facility, a $200 million Cash Flow Revolving Facility, a $1.598 billion U.S. Term Loan Facility, a $569 million European Term Loan Facility, $1.75 billion in various Secured Notes, and $226 million in finance leases and other obligations.
The unsecured debt totaled $1.15 billion, consisting of $690 million in 2027 Unsecured Notes and $460 million in 2029 Unsecured Notes.
The Restructuring Support Agreement and Plan
On January 25, 2026, Multi-Color entered into a Restructuring Support Agreement with Consenting First Lien Lenders holding approximately 72.3% of First Lien Claims and Clayton, Dubilier & Rice as Plan Sponsor. The company began soliciting votes on the prepackaged plan on January 27, 2026, two days before filing for bankruptcy.
The restructuring will provide a $3.9 billion reduction in net debt, adequate capitalization with over $550 million of liquidity at closing, cash savings of approximately $350 million in annual debt service obligations, and a seven-year maturity runway on the new debt.
The plan includes debtor-in-possession financing of up to $657.5 million, comprising $250 million of new money commitments, a 1:1 roll-up of First Lien Secured Claims, a $7.5 million DIP Backstop Premium, and up to $150 million in incremental new money loans.
Treatment of Claims and Interests
Under the plan, ABL Facility Claims will be paid in cash or refinanced. First Lien Secured Claims will receive New Preferred Equity Subscription Rights, New Debt Allocation, Cash Consideration, New Warrants, New Preferred Equity, and New Common Equity. Junior Funded Debt Claims will receive Cash Consideration and New Common Equity.
General Unsecured Claims will be unimpaired and reinstated, meaning these creditors will receive full payment of their allowed claims. Existing Equity Interests will be cancelled with no recovery.
First Day Relief and Timeline
Multi-Color filed various first day motions seeking relief to maintain business operations during the bankruptcy case. The company requested authority to continue using its existing cash management system, pay critical vendors and trade claims, pay employee wages and benefits, maintain insurance policies, continue customer programs, pay taxes and fees, and protect tax attributes including net operating losses.
The company estimates it had approximately $22 million of state net operating losses, approximately $1.5 billion of 163(j) Carryforwards, approximately $400,000 of U.S. federal Capital Loss Carryforwards, approximately $1.3 million of general business credits, and approximately $3.5 million of foreign tax credits as of December 31, 2025.
The restructuring operates on an aggressive timeline. The plan includes milestones for entry of an interim DIP order within three business days of the petition date, entry of a final DIP order within 35 days of the petition date, court approval of a confirmation order within 60 days of the petition date, and a plan effective date within 90 days of the petition date.
Professional Representation
Kirkland & Ellis LLP serves as lead counsel to the debtors, with Cole Schotz P.C. serving as local counsel in New Jersey. The Chief Restructuring Officer is a former Chief Financial Officer of the company who joined in January 2024 and was appointed to the restructuring role in January 2026.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 241 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.