Walmart bakery items recalled by FDA | IGT systems disrupted from cyberattack | Hearthside files for bankruptcy after child labor probe

In today’s Portfolio Intelligence Daily:?

• Walmart bakery items recalled by FDA
• IGT systems disrupted from cyberattack
• Hearthside files for bankruptcy after child labor probe

Our analyst team curates these summaries from Auquan’s Intelligence Engine, which uses generative AI and retrieval augmented generation (RAG) to uncover material non-financial insights at scale to support deal sourcing, due diligence, risk monitoring, and compliance.

Industry trends:

• The magic of RAG is in the retrieval (InfoWorld) — Retrieval-augmented generation (RAG) and AI agents are transforming how AI can automate knowledge work in the enterprise.
• Tackling Information Overload in the Age of AI [private credit] (TDWI Upside)
• Why AI is finally catching up with financial services (Maddyness)

Walmart bakery items recalled by FDA

The Food and Drug Administration (FDA) has issued a class 2 recall for certain Walmart bakery items due to potential contamination

• Walmart is recalling over 40,000 units of Great Value Cheese Danishes and Cinnamon Rolls after plastic pieces were discovered in the products. The recall affects 2,027 cases of Cheese Danishes and 1,602 cases of Cinnamon Rolls sold nationwide.?

• The affected products are packaged in 16.5-ounce containers and can be identified by their UPC codes: Cheese Danishes (UPC 078742201177) and Cinnamon Rolls (UPC 078742201160), both with the lot number L092525200 269X.?

• The FDA has classified this recall as a Class II, indicating that while there is a low probability of serious health consequences, exposure to the contaminated products may cause temporary or medically reversible adverse health effects.?

• Consumers are advised not to consume the recalled items and to check their kitchens for these products. If found, they should be discarded or returned to Walmart for a refund.

Select timeline

• Nov 22, 2024 | Walmart recalls over 40,000 bakery items in US due to potential plastic contamination (Hindustan Times)
• Nov 21, 2024 | FDA Announces Class II Recall for Walmart Bakery Items Due To Potential Contamination (All Recipes)
• Nov 21, 2024 | Cheese Danishes, cinnamon rolls sold at Walmart recalled over plastic contamination (WCNC)

IGT systems disrupted from cyberattack

International Game Technology (IGT), a gambling giant, has recently experienced a significant cyberattack, disrupting various internal systems and operations.

• IGT detected unauthorized access to its internal information technology systems on November 17, 2024, leading to operational disruptions across its network. The company promptly activated its cybersecurity incident response plan to address the breach.?

• The attack has forced IGT to take certain systems offline as a precautionary measure. While the company's public-facing services appear unaffected, the disruption has impacted critical internal applications necessary for its operations in the gambling and lottery sectors.?

• IGT is currently investigating the incident with the help of external advisors to assess the extent of the breach and to implement measures for recovery. The company has not yet determined whether the cyberattack will have a material financial impact.?

• IGT is actively communicating with customers and stakeholders about the situation and has put alternative solutions in place to maintain service continuity during this disruption. The company emphasizes its commitment to restoring affected systems while ensuring transparency throughout the recovery process.?

Select timeline

• Nov 22, 2024 | Major Cyberattack Targets Gambling Giant IGT, Systems Taken Offline (The Cyber Express)
• Nov 22, 2024 | Cyberattack Disrupts Systems of Gambling Giant IGT (Security Week)
• Nov 22, 2024 | IGT reports it suffered a cyberattack (Review Journal)

Hearthside files for bankruptcy after child labor probe

Hearthside Food Solutions, based in the United States, contract manufacturers and the nation's largest privately held bakery has filed for bankruptcy following scrutiny from a child labor investigation:

• Hearthside filed for Chapter 11 bankruptcy in Texas, aiming to eliminate over $1.9 billion in debt and secure $200 million in new equity capital to support its restructuring efforts.

• The company faced scrutiny due to a child labor scandal that emerged last year, which contributed to its financial struggles and inability to refinance its debt.

• Hearthside has entered into a Restructuring Support Agreement with key stakeholders, ensuring widespread backing from first lien lenders, second lien lenders, and unsecured noteholders, which is crucial for its restructuring process.

• To maintain operations during the bankruptcy process, Hearthside has sought $300 million in debtor-in-possession financing, allowing it to continue paying employee wages and honoring vendor obligations while navigating through Chapter 11.

Select timeline

• Nov 23, 2024 | Private Equity-Backed Snack Maker Hearthside Files Bankruptcy (Bloomberg)
• Nov 23, 2024 | Snack Maker Hearthside Files for Bankruptcy After Child Labor Probe (Money.US.News)
• Nov 23, 2024 | Private Equity-Backed Snack Maker Hearthside Files Bankruptcy (Live Mint)

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