A beer company now files for an unexpected liquidation after its liabilities hit ten times its assets, a filing report shows.
Craft Beer Cellar has now filed for Chapter 7 bankruptcy to liquidate its assets, suffering from financial distress and failing to sell its business, reports TheStreet.
The Belmont, Mass., craft beer retail chain and restaurant, filed its petition on February 5th in the U.S. Bankruptcy Court for the District of Massachusetts in Boston listing up to $100,000 in assets and from $100,000 to $1 million in liabilities.
Among bankrupt retailer’s debts is a Nov. 28 agreement for a judgment against it from the Cambridge District Court in Medford, Mass., ordering it to pay $181,770 from unpaid rent and fees to its landlord, Albert J. Locatelli Realty Trust for its Belmont flagship location.
The debtor operated a Craft Beer Cellar bottle shop and German restaurant Trinktisch at a Belmont Center location.
Craft Beer Cellar first opened in 2010 with instant success, drawing “beer geeks” from across the region, the Belmont Voice reported.
The owners later launched a franchise business that had meteoric success initially.
However, the company was down to four stores by the end of 2023, co-owner Suzanne Schalow reportedly said in December.
The debtor reportedly shocked its clientele in summer 2023 when the company’s owners said that they were seeking a sale of the businesses.
Fans of the store and restaurant received the final bad news in November when Craft Beer Cellar and the restaurant revealed they were closing permanently at the end of the year after failing to find a buyer for the company.
The owners blamed effects from the Covid pandemic, a need for more life-work balance and irreconcilable differences with their landlord as reasons for shuttering their businesses, reports TS.
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Another fast food franchise now declares an unexpected bankruptcy as a result of failing locations, sources report.
Rival chains including Restaurant Brands International’s (QSR) Burger King and Popeye’s have struggled to keep up, reports TheStreet.
Now, after Burger King saw multiple franchise owners file for Chapter 11 bankruptcy protection, another RBI brand operator has followed that path and filed for Chapter 11 bankruptcy protection.
“Popeye’s likely suffered worse than Burger King during the covid pandemic because some of its locations lacked drive-through lanes.
That meant that customers who wanted to pick up their orders had to enter the restaurant at a time when people were uncomfortable doing that,” the outlet reports.
RRG, Inc., which operates 17 Popeye’s locations based in Georgia, has filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the Southern District of Georgia.
The owners, Mark Rinna and Jane Rinna, said that the filing is because a few locations are dragging the rest down.
“Debtor is filing bankruptcy as a result of failing locations.
Debtor has approximately three Popeye’s restaurants that have significantly lost money and caused a financial burden on the continued operation of the remaining restaurants.
[Furthermore] Debtor has fallen behind on lease payments of remaining profitable restaurants and needs to cure those arrearages to avoid lease termination,” the company shared in its bankruptcy filing.
The owners say they plan to continue operating while in Chapter 11.
This is the second Popeye’s franchisee to file bankruptcy over the past 12 months as Premier Cajun Kings filed for Chapter 11 bankruptcy in March 2023 after its owner died.
The three-page RRG court filing does not contain any details about the size of its debt or the cost of its leases.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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