Supplement Space Exits: Bankruptcy Traffic Could Accelerate

Gaspari Nutrition, acquired by Allegro Nutrition, sought Chapter 11 protection after its debt load outstripped its revenue outlook. Natrol threw in the towel and filed after federal judges consolidated multiple class action claims accusing the firm of false advertising for its joint relief products.

Bankruptcy sales could be growing as an exit strategy in the dietary supplement space with business and regulatory costs outstripping some firms’ revenues and with false claims litigation scaring off others.

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