Under weight of debt and lower sales, Chester County mushroom grower files Chapter 11 bankruptcy

Paul J. Winterhalter Quoted in Philadelphia Business Journal Regarding Representation of Chester County Mushroom Grower

September 25, 2020 | By  – Reporter, Philadelphia Business Journal


Entities affiliated with C&M Mushrooms, an Avondale grower of portabella, cremini and button mushrooms, have voluntarily filed Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.

Going under the names C&C Entity L.P., Cardile Mushrooms Inc., and Cardile Mushrooms C&M LLC, the company was suffering under the weight of debt and the ability to make payments has been exacerbated by the reduction in business as a result of the pandemic, according to bankruptcy documents filed Sept. 18.

They have not been able to make the payments on the bank debt and the Chapter 11 filing was mainly forced by the secured creditors, said Paul J. Winterhalter, an attorney with Offit Kurman representing the mushroom company.

“Their operations have been significantly impaired due to economic conditions,” Winterhalter said.

Cardile Mushrooms Inc. and Cardile Mushrooms C&M LLC separately listed assets of $0 to $50,000 and liabilities of between $1 million and $10 million. C&C Entity L.P. listed both assets and liabilities of fewer than $50,000.

Cardile’s challenges began in 2018 when the company was refinancing existing debt and, during that process, one of its primary lenders backed out at the last minute, Winterhalter said. At the same time, the company needed to make “significant” repairs to an air conditioning system integral to its mushroom operations, he said.

“With the loan withdrawn, that caused a significant cash crunch,” Winterhalter said. “They used cash from their operations to make piecemeal repairs and that caused a snowball effect. Then Covid hit. With mushrooms, either you sell them to restaurants or companies who sell them to restaurants.”

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Since 1983, Paul J. Winterhalter has been representing businesses and individuals in bankruptcy matters, commercial litigation proceedings, and a variety of other engagements involving sophisticated legal representations. It is his mission to provide every client, regardless of size or stature, with the most exacting and attentive legal representation possible. With an emphasis on providing excellence in legal representation on a cost-effective basis, Mr. Winterhalter never loses sight of financial implications for his clients on any action he recommends, and understands that clients' interests and goals are the priority.


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