Reddy Ice Holdings Inc. says it plans to file for Chapter 11 bankruptcy protection.
The Dallas-based packaged ice company on Thursday also said it wants to pursue a possible buyout of Canadian competitor Arctic Glacier, which is also operating under bankruptcy protection, and its subsidiaries.
Reddy Ice said that its business has been hurt by softer economic conditions, increased commodity costs and heavy debt levels.
The company said its plan to file for bankruptcy and restructure has the support of its lenders and major creditors and that its operations will continue uninterrupted.
Reddy Ice says it will ask for approval from a bankruptcy judge in District of Texas to exit from Chapter 11 in 45 days or less.