The US’s largest candy store retailer has cited the effects of the pandemic as the reason for the filing.
The news comes as the brand has announced that it has approximately $0.5M in cash, $6.2M of secured debt and $10.4M of unsecured liabilities including unpaid rent. Like many other retailers during, It’Sugar has been looking to landlords to co-operate and provide more suitable conditions to support the current struggling climate. However Jarett Levan, President of BBX Capital Corporation and BBX Capital Florida LLC, which acquired the brand in 2017 said that this has not been the case.
He comments: “It’Sugar’s liquidity and its ability to sustain its operations were dependent on obtaining significant rent abatements or deferrals from its landlords, amended payments terms from its vendors, and improvement and stabilisation of its sales volumes. This has not occurred and resulted in the decision to file bankruptcy proceedings. We believe that It’Sugar will be better positioned to successfully navigate the effects of the Covid-19 pandemic upon exiting from bankruptcy.”
Although the brand has announced the filing, it still plans to continue to operates its 100 stores across the nation which include the company’s largest store, a 22,000sq ft space spanning three-storeys which opened at the end of last year at American Dream.
