A popular alcohol company now declares an unexpected bankruptcy after facing a difficult time coming back from the Covid-19 pandemic.
Colorado-based Lee Spirits, a distiller of premium gin, vodka and liqueurs, on March 8 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Colorado after shutting down all operations four days earlier, including its Colorado Springs tasting room, Brooklyn’s on Boulder Street.
The company on March 4 revealed on social media that it had ceased operations as it could not overcome the prolonged impact of the Covid-19 pandemic and “the ever-changing industry landscape.”
The company did not specify whether it was seeking a buyer for its assets or would liquidate.
“It is with heavy hearts that we share some difficult news. After a decade of dedicated service to the Colorado community, Lee Spirits Company, alongside our beloved tasting room, Brooklyn’s on Boulder Street, will be ceasing operations effectively immediately,” Lee Spirits said in a statement on social media.
“Founded over 10 years ago, Lee Spirits Company has been an incredible source of pride. We’ve poured our passion into crafting premium gin, vodka, and liqueurs, aiming to elevate your gatherings and celebrations,” the statement continued.
“Brooklyn’s on Boulder Street, once a beacon of Colorado Springs’ cocktail scene, stood as a testament to our commitment to creating memorable experiences,” the company said.
“However, despite our best efforts, the prolonged impact of the COVID-19 pandemic and the ever-changing industry landscape presented challenges we simply couldn’t overcome.”
Lee Spirits, which launched operations in 2013, reported $616,552 in assets and $1.38 million in liabilities in its petition.
The company’s annual gross revenue had fallen from $997,221 in 2022 to $832,035 in 2023, according to court papers.
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Also Read: A Massive Mall Retailer Is Now Closing in California
Other Economy News Today
A book retailer now makes unexpected plans to close all locations following a bankruptcy that fans hoped would help the company.
Tattered Cover filed for bankruptcy last October and the company’s CEO has released a new update on its case.
CEO Brad Dempsey said the company has submitted a revised plan to lift itself out of financial troubles, but this had to be approved by the U.S. Bankruptcy Court for the District of Colorado, according to the Denverite.
The Colorado book chain has two locations in Denver, one in Littleton, and one in Aurora.
CEO Dempsey said the company was considering several cost-cutting measures and these could look at possibly moving the current stores to cheaper retail spaces, per Tattered Covers’ website.
He added that the chain could become “a smaller, more modern and financially sustainable business.”
“Without a doubt we still have complicated negotiations to complete, challenging local economic pressures to navigate, and difficult decisions to make as we forge ahead toward establishing profitability,” Dempsey said in a statement.
“But with the continued hard work of our incredible team and support from people in Colorado as well as across the nation, we are optimistic about Tattered Cover’s future.”
Dempsey predicted that the company could break out of bankruptcy by June 2024.
He said it hoped to do this by making $3.4 million to cover unsecured debts and fix its relationship with partners.
Parts of the CEO’s optimism has come from a strong holiday season which generated lots of sales and money for Tattered Cover, reports The-Sun.
“Despite this, the company’s expenses could also increase due to due higher wages, rents, and health insurance premiums.”
The unapproved debt plan hopes to see the company out of debt by 2025 and the U.S. Bankruptcy Court for the District of Colorado is expected to hear the plans in May, according to the Denverite.
Other retailers have had to reconsider the fate of some of their physical retail locations.
The U.S. Sun previously reported that a Mooks-A-Million store in Lafayette, Louisiana had started a closing down sale.
The sale started on December 24 and Google Maps confirmed that the store has down officially closed.
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Also Read: A Massive Cosmetics Company Now Closes in New York
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