The first tobacco company to joing the hemp and marijuana industries has filed for bankruptcy protection.
Pyxus International Inc., one of the world’s largest tobacco suppliers, was hard hit by declining tobacco consumption and coronavirus-sparked supply disruptions. The company also grows hemp in the U.S. and marijuana in Canada.
Based in Morrisville, North Carolina, Pyxus filed a prepackaged plan to reduce debt by $400 million and give control to a group of bondholders, according to The Wall Street Journal.
The company’s Canadian marijuana operations, Figr Brands Inc., aren’t part of the bankruptcy filing, an executive said.
Pyxus, formerly Alliance One International, was part of the influx of Big Tobacco and Alcohol into the cannabis industry.
Pyxus trades on the New York Stock Exchange as PYX.