Portland, Maine, U.S.A.-based Cozy Harbor Seafood has agreed to sell the assets of the company to Aquashell USA – an Indiana-based LLC.
Cozy Harbor filed for Chapter 11 bankruptcy in early July, citing challenges related to post-Covid price instability and uncertain tariff threats. The company later signaled it was planning to auction the company off in early October after determining it was the best strategy to resolve its financial issues.
A court filing on 20 October indicates Cozy Harbor ultimately settled on Aquashell USA as a buyer for a purchase price of just over USD 6.5 million (EUR 5.6 million). Aquashell has already made a USD 280,000 (EUR 241,000) deposit in escrow as part of the sale process.
That purchase price includes USD 2.01 million (EUR 1.73 million) for Cozy Harbor’s accounts receivable, USD 2.74 million (EUR 2.36 million) in product inventory, and USD 1.75 million (EUR 1.51 million) in property, according to the court filing.
The filing also includes guidance for real estate affiliated with Cozy Harbor, including the company’s St. John Street and Tenants Harbor locations in Portland, which are both currently leased by the company. The court filing said Aquashell will have an option for 90 days to purchase each location “free and clear of all Encumbrances” with the St. John Street Location coming with a potential purchase price of USD 4.25 million (EUR 3.66 million) and the Tenants Harbor location carrying a purchase price of USD 1.5 million (EUR 1.29 million).
The company will also have the ability to continue Cozy Harbor’s lease at the Union Wharf in Portland for an initial rental rate until 31 May 2026 of USD 15,153 (EUR 13,058) per month and a 3 percent annual rental increase.
The filing also indicates that for two years after the sale closes, the owners will not engage in any competing business – including business related to fresh and frozen seafood including lobster, coldwater crab, coldwater shrimp, and fish fillets – for two years. It also includes a five-year noncompete clause where the owners will not be allowed to work with the company’s vendors and customers and not hire or offer employment to Cozy Harbor’s current employees.
Aquashell was registered as an LLC in Indiana in November 2020, and according to court filings, the president of the company is Hal P. Harlan.
Cozy Harbor President John Norton told SeafoodSource that he had no comment on the sale.
