The adult non-alc industry was rocked in April when pioneering retailer Boisson shut its nine physical stores and filed for bankruptcy. Now, many non-alc (NA) brands are still asking questions about the closure, while others are finding opportunity in a growing landscape. In early April, Boisson filed in the U.S. Bankruptcy Court for Central California for a reorganization of its operations under Chapter 11, subchapter 5 of the U.S. bankruptcy code, a type of bankruptcy that went into effect in 2020 designed to allow small business owners to reorganize debt and develop a plan to pay back creditors without ceasing operations. To recap what led to bankruptcy, per court records: In 2023 the company generated a combined revenue of $10 million from its retail and e-commerce operations, alongside more than $1 million in wholesale revenue and an additional $175,000 from Boisson-owned brands. But Boisson was eventually unable to pay its debts when “faced with escalating operational costs, particularly from retail operations at its current nine traditional brick-and-mortar locations, and a competitive landscape that strained its financial reserves.” At BevNET Live in June, founder Nicholas Bodkins, who doubles as chief brands operator, shared updates on the company’s future as the business shifts to an exclusively e-commerce and wholesale import and distribution operation. He also announced the rebound via LinkedIn with the help of a new financial partner. The company has also appointed new execs: Arie Gurevitch, former director of e-commerce for Southern Wine and Glazer’s national accounts, as CEO, and Clyde “Tripp” Rea, as COO. Meanwhile, some suppliers are grappling with supporting a partner that in many ways opened the first doors for them, while building back trust and lost revenue. The bankruptcy filing lists Boisson’s 20 largest unsecured claims, and the company’s largest creditors, including several NA brands such as French Bloom, The Pathfinder, Almave, Three Spirit Drinks, as well as NA retailer The Zero Proof. Other suppliers are still waiting for word on the status of their product and payment, with amounts ranging in tens of thousands of dollars. Lily Geiger, founder of NA aperitivo Figlia, said: “I unfortunately have not heard anything from Boisson but they are still selling product of ours that they have yet to pay for on their website.” Evan Quinn, co-founder and CEO of Hiyo, said he also hasn’t heard anything from the company, and “they still owe us a decent chunk of change.” He added that he wouldn’t work with them again until they paid off debts owed. Others said they are in conversations with Bodkins. Under his new role, the founder has asserted on LinkedIn that he is focused on the “important process of overseeing payments to suppliers, continuing to help former employees who have been affected by this restructuring,” and “rebuilding relationships across the board and working to plot our path forward in a sustainable and responsible way.” Boisson filed a second amended plan of reorganization on July 17. A plan of reorganization is a contract between a debtor (Boisson) and its various stakeholders that, once approved by the court, replaces the debtors’ obligations existing prior to the bankruptcy filing date. Secured creditors, who typically in bankruptcy have the highest priority to be paid, will convert their debt into equity, with existing equity to be extinguished. Unsecured creditors, such as non-alc suppliers, are to be paid “as soon as practical” after approval of the plan the lesser of 10% of their claim and their pro rata share of $325,000. That comes to an estimated distribution of 7%. Creditors are allowed to object to the plan, which may continue to be amended prior to a confirmation hearing scheduled for August 27. Assuming the plan is approved by the court and then goes into effect, Boisson will be free to move forward without further court oversight. Become an Insider to read more about the path forward for the industry and why Boisson may not be a part of it.
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