BFG Supply Files Chapter 11 With $342.5M in Debt, Zero Recovery for Trade Creditors

BFG Supply Co., LLC filed for Chapter 11 protection on August 18, 2026 in the U.S. Bankruptcy Court for the District of Delaware, citing two years of acquisition debt, sales staff turnover and shrinking vendor credit lines.

Why it matters: BFG’s case projects zero recovery for unsecured trade creditors, so suppliers still shipping product need to act now.

What pushed BFG Supply into Chapter 11

BFG’s own court filings blame more than two years of operational and liquidity deterioration on acquisitions it never fully integrated.

• BFG’s revenue fell roughly $45 million year-over-year in fiscal 2026 as debt-financed acquisitions added cost without adding scale across its 15-warehouse network.
• Sales staff turnover cost BFG major accounts, and reduced vendor credit access left the company unable to stock inventory ahead of peak lawn and garden season.
• Ares Capital Corporation had already marked its BFG term loan at 42.35% of cost by late July 2026 after placing the debt on nonaccrual status in October 2025.

What the filing means for unsecured suppliers

The debt structure behind BFG’s Case No. 26-11284 leaves little room for trade creditors once secured lenders and administrative costs are covered.

• BFG carries roughly $342.5 million in funded debt across a revolving facility held by ACF Finco I LP and a term loan held by Ares Capital Corporation, both dating to a November 2021 recapitalization.
• Court filings state no funds will be available for unsecured creditors once administrative expenses are paid, a recovery pattern also seen in CashCall’s Chapter 11 case.
• BFG is seeking a $55 million debtor-in-possession loan for seasonal working capital while it runs a roughly 60-day sale process for three owned and 16 leased facilities.
• Trade credit insurance changed the recovery math for suppliers in a comparable filing, well before this kind of sale process ran its course.

Why BFG cancelled its 2026 event calendar

BFG’s liquidity crunch showed up first in its trade show commitments, well before the Chapter 11 filing became public.

• BFG scrapped its Fall Marketplace Expo lineup and stopped accepting new customer orders as its cash position tightened.
• Exhibitors and registrants for the cancelled events are still owed refunds, with no confirmed repayment timeline while the case proceeds.
• Pamplona Capital Management has owned BFG since the 2021 recapitalization that layered on the debt now driving the filing.

What to do now

Suppliers and creditors exposed to BFG Supply should move on these steps now. Chapter 11 recovery options for creditors can change the outcome for policyholders, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.

1. Confirm your current receivable balance and shipment status with BFG and document every open invoice.
2. Check your trade credit insurance policy’s notification deadline and file a claim if BFG carries a named or discretionary credit limit on your policy.
3. Stop extending new credit terms to BFG until the sale process and any assumption of trade obligations by a buyer are confirmed.
4. Watch for rejection notices as BFG runs its roughly 60-day sale of three owned and 16 leased facilities. A rejected contract creates its own damages claim, which lands in the same general unsecured pool as the rest of your trade balance.
5. Contact Securitas Global Risk Solutions to review your exposure and coverage options before the claims deadline.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.