A massive beverage company now files an unexpected bankruptcy to ‘focus on the best interests of its creditors and other stakeholders.’
Boisson, which curates the best collection of non-alcoholic spirits, beers, and wines as well as mixology supplies including shrubs, syrups, mixers, and more has filed for Chapter 11 bankruptcy protection.
The company also shuttered its eight brick-and-mortar stores, according to multiple media reports and a LinkedIn blog post by Boisson founder Nicholas Bodkins.
However, the non-alcoholic (NA) beverage brand plans to continue operating as a wholesaler and a DTC ecommerce retailer, reports Retail Touch Points.
Boisson had taken a “neighborhood stores” approach to brick-and-mortar expansion, opening stores in NYC, San Francisco, Los Angeles and Miami.
“Boisson’s Board of Directors has determined that entering into a restructuring process for the company to shift its operational focus is in the best interests of its creditors and other stakeholders,” Bodkins wrote.
“This and other difficult decisions have been made, including the decision to close all retail locations.
While this is certainly disappointing, taking these actions will allow the company the opportunity to put forth a restructuring plan aimed to focus on the wholesale distribution and ecommerce divisions, which continue to operate, accepting and fulfilling orders without interruption.”
Bodkins took pains to stress that Boisson’s setback is not a failure for the NA category at large.
“No one should consider this anything other than what it is: a failed venture-backed startup that grew too quickly, made mistakes, and wasn’t able to find capital fast enough to continue to build three businesses at the same time (bricks-and-mortar retail, ecommerce, and wholesale import/distribution), which in hindsight, proved to be impossibly hard to execute,” he wrote.
“I am proud that we served more than 250,000 customers, of the deep and meaningful wholesale partners who embraced NA for their customers, and proud of the awareness and education we brought to consumers, introducing them to NA through partnerships we forged with brands and communities,” Bodkins added.
Detailed information about Boisson’s restructuring plans was not available at press time.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A massive retailer now liquidates and shutters its stores for good while also divesting its real estate assets, the company confirmed.
While it has not filed for any type of bankruptcy yet, 99 Cents Only has decided to close down and liquidate its stores.
“The company has entered into an agreement with Hilco Global to, among other things, liquidate all merchandise owned by the company and dispose of certain fixtures, furnishings, and equipment at the company’s stores.”
The sales began on April 5, 2024 and will be carried out at all 371 of the company’s stores, 99 Cents Only shared in a press release.
In addition, Hilco Real Estate will manage the sale of the company’s real estate assets, both owned and leased, in Arizona, California, Nevada, and Texas.
“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” said interim CEO Mike Simoncic.
“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company’s ability to operate.”
Simonic has stepped down, and the company has appointed Chris Wells, Managing Director at Alvarez & Marsal, as Chief Restructuring Officer, per TheStreet.
While 371 stores seem like a lot, it’s a tiny amount compared to market leaders Dollar General, which has more than 19,000 locations, and Dollar Tree which has more than 16,000.
Having that many locations gives those discount retailers a massive advantage when it comes to buying.
That has always been an edge for larger chains, but, in the current era of supply chain problems, it has made it very hard for smaller players to compete.
And 99 Cents Only, which operates 371 locations, has a deep history.
“The stores date back to the 1960s when the company’s founder, Dave Gold, inherited a tiny liquor store in downtown Los Angeles and decided to run a test by selling bottles of wine at a fixed price-point of 99 cents.
The test was an instant success. Dave thought selling everything in the store for 99 cents would be hugely popular,” the company shared on its website.
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
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