Synergy CHC is no longer an operating-growth story. It is a residual claim sitting under a court-supervised capital structure after the company's largest retailer walked away. Costco informed the company in July that it is discontinuing FOCUSfactor products after a relationship that lasted more than sixteen years. That single account represented 58% of net revenue in fiscal 2025. Management stated that the decision is expected to have a material adverse effect on the business, liquidity, and financial condition. The common stock's remaining question is whether anything sits above zero after the senior lender is paid.
The March quarter already showed the franchise shrinking before Costco's notice arrived. Product sales fell even after stripping a prior-year license that did not repeat. Functional beverage revenue in that quarter topped the entire prior fiscal year, yet the line remained a small slice of a nutraceutical company. Cash at quarter-end sat under $300 thousand. Net notes payable were near $28 million. Interest expense consumed a large share of gross profit. The beverage print was real. It was never large enough to replace a club account that defined the company.
Nasdaq is suspending trading at the open on the publication date after a delisting determination tied to the chapter eleven filing. The company stated it does not intend to appeal. Four directors resigned the day of the petition, leaving the chief executive as the sole remaining board member. A plan of liquidation or reorganization is anticipated inside a 120-day window. Does any confirmed plan leave common shareholders a stub, or does the residual sit entirely with the secured lender?