CHICAGO, Oct. 12 (UPI) -- The Chicago-based maker of Jays potato chips and other snack foods is reported to have filed for bankruptcy and is on the verge of being sold.
Jay’s, which has been struggling financially due to rising production costs and fierce competition from Frito-Lay and others, is believed to be in talks with Snyder’s of Hanover, a Pennsylvania-based company noted for its hard pretzels, the Chicago Tribune said Friday.
Ubiquity Brands, the parent of Jays Foods, said Jays filed for federal Chapter 11 bankruptcy protection late Thursday.
While Jays has developed a strong following, regional snack-food makers face tough competition from such national brands as PepsiCo's Frito-Lay, which dominates the salty-goods aisle.
The purchase price was expected to be around $25 million and was planned to coincide with the bankruptcy filing by Jays, its second in three years, the newspaper said.
Jays has 681 employees..
