Another popular company now files for unexpected bankruptcy after falling behind on upwards of $10 million in liabilities.
Disco skin-care brand said in a filing it had between 50 and 99 creditors and estimated liabilities between $1 million and $10 million.
Unfortunately for customer who had pre-paid orders, the company said it that it would not have any money left over for unsecured creditors.
The voluntary Chapter 7 filing was made by the company’s president and sole director, Benjamin Smith.
Disco’s Instagram page is still up, but all its sales pages have been removed.
The company has not posted officially about the bankruptcy, but Smith on his LinkedIn spoke to what had happened, reports TheStreet.
Disco sold what it called science-backed skin-care products for men.
The company called its products “effective formulas made with clean ingredients.”
Smith apologized to customers who will not get their orders, vendors who will not get paid, and investors (including family and friends) who have lost their money.
He said the company had been successful and between 2020 and 2021 had raised $8 million.
“Unfortunately for us, 2022 and 2023 had different plans for our business. We struggled to raise capital to fund the business. As our cash position waned, our debt load grew,” he wrote.
Smith said that the company explored multiple options to survive.
That included continued efforts to raise money and multiple attempts to be acquired.
The company had also looked into a Chapter 11 filing.
“In a bid to salvage the business, we reduced our burn rate, right-sized our unit economics, and maintained a lean team,” he added.
Smith was forced to abruptly close the company when its lender foreclosed on its loan.
That took all restructuring off the table and caused the company not to ship orders to “thousands of subscribers,” according to Smith’s post.
Other Economy News Today
Popular Texas restaurant chain Texas Roadhouse will soon be opening a new location in California providing 250 full-time and part-time positions.
For perspective, there are currently 630 Texas Roadhouse restaurants in the United States as of September 20, 2023.
The state with the most number of Texas Roadhouse locations in the US is Texas, with 70 restaurants, which is about 11% of all Texas Roadhouse restaurants in the US.
According to the latest report from TheStarNews, the new 1908 Sweetwater Road location will be 8,700 square-feet in size and set for a December 11th opening.
Construction began earlier this year in National City making it the third location in San Diego County, with one in El Cajon and another in Oceanside.
“The reception has been nothing short of amazing,” said Texas Roadhouse Marketing Coach Candice Gomez.
“We are big on community outreach and have been able to partner with many local businesses, sports venues, and schools. We love our locals, and they love us.”
Gomez said that National City was chosen because the “beautiful city if full of culture.”
“You have many different ethnicities, races, and economic backgrounds. We are excited to be a part of this amazing city and bring some great steak to its people,” she said.
Gomez said what differentiates Texas Roadhouse from other steak houses is first, its customer service.
“We have an amazing story of hand-cut steaks, fall-off-the bone ribs, fresh-baked bread, ice-cold beers, and legendary margaritas.
Oh, and the line dancing doesn’t hurt,” she said.
“When you think Texas Roadhouse, you think made-from-scratch and you think fun.”
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