Hain Celestial faces possible bankruptcy as stock plunges and debt extension fails

Hain Celestial's stock dropped 48% to 30 cents following the failure of lenders to extend its December debt by the Oct. 12 deadline, fueling speculation that the company may seek bankruptcy protection as early as November. The firm, which holds roughly $655 million in unsecured debt, had intended to allocate up to $310 million from a proposed sale of its U.K. and European units toward debt reduction. A company spokesperson emphasized an ongoing turnaround plan focused on capital structure, portfolio simplification, and execution, while noting that directors are still evaluating various strategic and financial alternatives.

Hain, headquartered in Hoboken, New Jersey, owns brands including Earth's Best baby food and Hartley's jam. Negotiations with private-equity firm Aurelius over the sale of its U.K. and European businesses remain unresolved.