Coming off another quarterly loss, ingredients business Z Trim Holdings Inc. has appointed a new chief financial officer and hired a consulting firm.
Z Trim is an agricultural ingredient technology company that sells products to help food makers reduce costs. The company also makes products that aim to reduce fat and calories, add fiber, provide shelf-stability and prevent oil migration in food. Z Trim also has an industrial division that provides ingredients to the oil industry.
The company appointed Anthony Saguto as CFO, effective May 18. Saguto has worked at other food-manufacturing firms, including Kronos Foods Inc., Foulds, Rymer Foods Inc. and Beatrice Co..
In April, the company hired consultant Jeffrey Consulting Group LLC, which is run by Daniel Jeffrey, who serves on Z Trim’s board of directors. Jeffrey Consulting was retained to improve operations, including manufacturing processes and marketing initiatives.
Mundelein, Illinois-based Z Trim had a $140 million deficit as of March 31, raising substantial doubt about its ability to continue as a going concern, or without the threat of liquidation, the company says in a May 15 filing with the U.S. Securities and Exchange Commission. Z Trim says its future depends on debt and equity financings.
Z Trim earned $214,743 in revenue in the first quarter of 2015, down from $316,470 in the same period of 2014. The company attributes the loss to a decrease in sales of 32 percent, and says that some customers who had ordered in the first quarter of 2014 moved their orders to the second quarter of 2015.
For the previous edition of Turnaround Tuesday, see Loss-Laden ZaZa Raises Cash as Volatile Oil Prices Affect Industry. For a list of struggling companies, check out Mergers & Acquisitions Distressed Company Watch List.
For more on M&A in food ingredients, watch our video interview with Kainos Capital's Sarah Bradley, Ingredients Companies Add Up to Tasty Targets. Ingredients companies have been the targets of a few M&A transactions lately. In March, SK Capital Partners bought wine ingredients company AEB Group.
Editor’s Note: The next editions of Turnaround Tuesday and the Distressed Company Watch List will appear on June 2.