Hello Bello, the baby products startup co-founded by renowned actors Kristen Bell and Dax Shepard, has filed for Chapter 11 bankruptcy protection, citing the significant challenges posed by inflation and escalating shipping costs. In a strategic move towards financial stability, the company anticipates an acquisition to ensure its continued operation.
Hildred Capital Management, a private equity firm with a primary focus on healthcare investments, has emerged as the “stalking horse” bidder in this scenario, signifying that other potential buyers will be permitted to submit superior offers as part of the bankruptcy proceedings. According to an unnamed source familiar with the matter, Hildred Capital has tabled a bid of $65 million, as reported by The Information on Monday.
Kristen Bell and Dax Shepard, who share not only a professional partnership but are also married in real life, jointly introduced Hello Bello to the market in 2019. The brand initially commenced its sales exclusively through Walmart and online channels before expanding its presence to encompass retailers such as Meijer, CVS, and various other outlets. The product line focuses on eco-friendly baby essentials, including plant-derived items such as diapers, wipes, and lotions. In a notable development in October 2021, the company inaugurated its first U.S.-based diaper manufacturing facility located in Waco, Texas.
Hello Bello has emphasized that the Chapter 11 filing in the U.S. Bankruptcy Court in Delaware is essential to enable continued disbursements to employees, vendors, and suppliers. The company anticipates court approval for several requests aimed at mitigating the impact on its customers. According to documents submitted, the Los Angeles-headquartered firm has listed assets ranging from $100 million to $500 million, along with corresponding liabilities.
