Vi-Jon files for Chapter 11 to resolve legacy talc liabilities

Vi-Jon has started a voluntary Chapter 11 case in Delaware to carry out a global settlement tied to alleged legacy talc-related liabilities. The company says it expects to keep operating normally while Emprise HPC helps fund the settlement trust and bankruptcy costs.

Why it matters: - Vi-Jon is using Chapter 11 to seek a court-supervised resolution of alleged legacy talc-related claims. - The process is designed to give the company and its non-debtor affiliates finality on those claims while keeping dry bath product operations running. - The filing could preserve customer service, production and distribution during the restructuring.

What happened: - Vi-Jon voluntarily filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on August 3, 2026. - The company filed to implement a global settlement resolving alleged legacy talc-related liabilities. - Vi-Jon is a private-label dry bath products company that makes Epsom salts and body powder. - Vi-Jon operates as a separate legal entity within Emprise Group’s portfolio. - Emprise and its other affiliates did not file for Chapter 11 and are not debtors in Vi-Jon’s case. - Chief Restructuring Officer Mackenzie Shea said the filing is intended to support a consensual plan while Vi-Jon continues to serve customers.

The details: - Before the filing, Vi-Jon entered a Restructuring Support Agreement with Emprise, Emprise HPC and counsel for more than 75% of holders of talc-related personal injury claims. - The RSA supports a reorganization plan that would resolve current and future alleged talc-related claims through a settlement trust funded by Emprise HPC. - The plan is intended to provide complete finality for Vi-Jon, Emprise and other non-debtor affiliates. - The RSA also contemplates transferring certain Vi-Jon assets to Emprise HPC or another Emprise affiliate in exchange for the global settlement contributions. - Vi-Jon expects to keep operating as usual during Chapter 11 and does not anticipate disruptions to distribution or customer service. - Subject to Bankruptcy Court approval, Emprise HPC agreed to accelerate about $8.1 million to Vi-Jon under an amended Limited Contribution Agreement. - Emprise HPC also agreed to contribute about $32 million when the plan takes effect. - Of that amount, $25 million would fund the settlement trust for talc claimants and about $7 million would cover remaining Chapter 11 costs. - The funding is not subject to repayment by Vi-Jon. - Vi-Jon has also filed customary motions to support ordinary-course operations, including uninterrupted payment of employee wages and benefits and continued production and distribution. - The company expects Bankruptcy Court approval for those requests shortly. - Additional case information and court filings are available at the company’s bankruptcy case site. - Stakeholders may contact Omni Agent Solutions at (888) 585-6494, (818) 581-2981 or vi-jonInquiries@OmniAgnt.com. - Sidley Austin LLP and Morris James LLP are serving as legal counsel to Vi-Jon. - Berkeley Research Group, LLC is serving as financial advisor. - Houlihan Lokey Capital, Inc. is serving as investment banker. - Bryan Cave Leighton Paisner LLP is serving as legal counsel to Emprise and the other non-debtor affiliates.

Between the lines: - The filing appears structured to isolate Vi-Jon’s talc exposure without pulling Emprise’s other affiliates into bankruptcy. - The RSA-backed timeline suggests the company wants an expedited path to a settlement rather than a prolonged restructuring fight. - The funding commitment from Emprise HPC reduces near-term bankruptcy financing pressure and supports a business-as-usual operating posture.

What's next: - Vi-Jon will seek Bankruptcy Court approval for its operating motions and the broader restructuring framework. - The court will need to review the settlement structure, the funding commitments and any plan-related transfers of assets. - If approved, the plan would move forward on an expedited timeline toward a settlement trust and claim resolution. - Vi-Jon says it expects to continue serving customers throughout the process.

The bottom line: - Vi-Jon is trying to resolve long-running talc liability exposure in Chapter 11 while keeping its core business intact.