Six weeks after Winnipeg-based Arctic Glacier Income Fund received court-sanctioned bankruptcy protection, it looks like its biggest rival is going down the same path.
The Wall Street Journal is reporting that Dallas-based Reddy Ice is in the final stages of preparing for its own bankruptcy protection action.
The paper is also reporting that its sources suggest an attempt made be made to merge the two struggling packaged ice companies.
Reddy generates about $300 million in annual sales to Arctic’s $240 million.
Both companies have been sucked into a downward spiral for the past three years after the U.S. Department of Justice launched an investigation into anti-trust activity in the package ice business.