It started as a bold challenger to Heinz, promising a cleaner, veggie-sweetened ketchup. Now, nearly 10 years later, True Made Foods Inc. finds itself in a financial squeeze — battling a costly lawsuit that’s pushed it to file for bankruptcy protection.
True Made Foods files for bankruptcy protection
True Made Foods, the Virginia-based condiment company known for its naturally sweetened ketchup and sauces, has voluntarily filed for Chapter 11 bankruptcy protection as it faces an ongoing legal battle with food manufacturer PIM Brands.
“We voluntarily filed, and we only filed because of the lawsuit PIM Brands was pursuing against us,” said CEO Abraham Kamarck in a LinkedIn message to TheStreet.
Kamarck described the lawsuit as “frivolous” and said the company believes it has grounds for a strong countersuit. However, the cost of litigation has become unsustainable. “We hope we can come out the other end stronger, though. Our sales are strong and growing,” he added.
According to RK Consultants, True Made Foods submitted its bankruptcy petition on October 30 in the U.S. Bankruptcy Court for the Eastern District of Virginia, reporting assets between $500,000 and $1 million and liabilities ranging from $1 million to $10 million.
Court filings also reveal that one of True Made Foods’ largest creditors claims a total of more than $361,000 owed to Teton Promotion in Motion over an alleged breach of a distributor agreement.
For now, all litigation has been temporarily halted under federal bankruptcy law, which places legal actions on hold while the Chapter 11 process moves forward.
True Made Foods stays true to its roots despite bankruptcy setback
Founded in 2015 by former Navy pilot–pilot-turned-entrepreneur Abraham Kamarck, True Made Foods set out to reimagine America’s favorite condiments through a healthier lens. Based in Alexandria, Virginia, the company built its brand around ketchup, barbecue sauce, mustard, and hot sauce made with natural sweetness from fruits and vegetables rather than added sugar or corn syrup.
Its clean-label approach resonated with health-conscious consumers, helping True Made Foods earn shelf space in major grocery chains such as Walmart, Whole Foods, Sprouts, and The Fresh Market. The startup attracted more than $6.9 million in funding and, at its height, could be found in over 5,000 retail locations across the U.S.
But the pandemic disrupted that growth trajectory. As grocery giants like Kroger and Safeway reallocated space to larger brands, smaller players like True Made Foods saw their visibility shrink. Even so, the company stayed true to its mission of promoting “real food made from real vegetables,” continuing to produce its signature lineup — from ketchup and mustards to Carolina-style barbecue sauces, rib and pork rubs, and cayenne hot sauce.
The brand continues to stand by its mission of bringing healthier condiments to American tables — even as it works to navigate its financial challenges. Despite the bankruptcy filing, True Made Foods products remain available online and in select stores nationwide, including around 388 Walmart locations, as well as Whole Foods, Sprouts, and The Fresh Market, according to the company’s website.
Source: TheStreet