A Fort Collins cidery that does most of its gross sales by its downtown taproom is bankrupt.
Summit Exhausting Cider sought Chapter 11 safety with its submitting Aug. 13, however its proprietor says nothing will functionally change for the enterprise.
“This was a troublesome determination, however this was a method to shed a lot of our insurmountable COVID- and post-COVID-related debt and proceed to maneuver previous the COVID hangover,” Summit President Jennifer Seiwald instructed BusinessDen in an e-mail.
She mentioned the transfer will maintain Scrumpy’s Exhausting Cider Bar and Pub, the enterprise’s taproom at 215 N. School Ave., open and proceed wholesale operations. In filings, Seiwald mentioned the enterprise has $165,000 in property and $2.7 million in liabilities, principally within the type of loans.
The corporate’s largest creditor is Seiwald and her husband, Rodney, who lent the enterprise over $1 million mixed. The corporate additionally owes the Small Enterprise Administration $550,000 and its landlord almost $200,000 in months of again lease. Scrumpy’s has 11 years left on its lease.
Summit did $532,000 in income from the start of this 12 months by the submitting final week, dropping $133,500 within the course of, in accordance with its chapter submitting. Eighty p.c of income by July got here from the taproom.
In 2024, Summit posted $777,000 in gross sales, down from $847,000 in 2023, the submitting states.
The Seiwalds began Summit Exhausting Cider in 2012 and moved to its present location in 2016, in accordance with the web site for Scrumpy’s, which is known as after a time period for cider made out of misfit and undesirable apples. The corporate has produced eclectic flavors resembling chocolate cherry, strawberry basil and blueberry lavender.
“Our staff will retain their jobs. Our landlord will retain their tenant,” Seiwold instructed BusinessDen. “(Chapter 11) will permit us to proceed to serve our very a lot appreciated prospects. We hope that everybody will proceed to assist us and hope to see you extra usually.”
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