Bang Energy Drink parent company files for bankruptcy, plans new distribution network

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(Bloomberg) — Bang Energy, the lawsuit-plagued energy drink maker, filed for Chapter 11 protection in Florida Monday with plans to overhaul its distribution model.

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Vital Pharmaceuticals Inc., Bang’s parent company, listed assets and liabilities of up to $1 billion each in its bankruptcy filing. According to a statement, Bang intends to continue operations and has $100 million in new funding from lenders.

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According to the statement, Bang plans to use judicial protection to implement a new, improved distribution network. The company says it lost a significant share of the energy drink market in recent years when it partnered with Pepsi.

Read more: “I Am Energy”: Inside the shaky empire of the bang billionaire

According to the statement, the filing will also help Bang recover from multiple lawsuits.

Competitor Monster Energy Co. won $293 million in a false advertising and trade secret lawsuit against Bang this year. Monster is identified in the bankruptcy court papers as Bang’s largest unsecured creditor.

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Bang also owes PepsiCo Inc. $115 million in a settlement, court filings show. The company’s partnership with Pepsi, which began in 2020, was dissolved amid disputes and lawsuits.

Bang dates back to a small sports supplement store founded in 1993 by Jack Owoc, the sole shareholder of parent company Vital Pharmaceuticals. Owoc introduced Bang in 2012, which is marketed as a pre-workout and energy drink.

In the statement, Owoc vowed to keep fighting Monster Energy and Pepsi. He added that Bang’s new distribution plans would allow the company to return to explosive growth.

“We’re coming like a freight train and we’re unstoppable,” Owoc said.

The bankrupt is Vital Pharmaceuticals Inc., 22-17842, US Bankruptcy Court for the Southern District of Florida (Fort Lauderdale).

(Updates with details and context throughout.)

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