Rob Shapiro,
owner of Sweet and Savory, said the decision to file for Chapter 11 bankruptcy
on Monday, Oct. 29 was based on the company’s need to restructure the
short-term debt it accrued. One of the biggest contributors to that short-term
debt was the opening of the new addition to the Sweet and Savory brand — the
Pub at Sweet and Savory.
“The pub opened
eight weeks late and $200,000 over budget so it burned up all my cash for the
winter,” Shapiro said. “It’s really nice now but I was buried under short-term
debt and I didn’t have enough cash.”
Shapiro said he
completed the remodeling and development of the pub without a loan and has been
unable to secure a loan to pay off his debts for the past two months. Chapter
11 bankruptcy allows for businesses, corporations or individuals to reorganize
and restructure their assets and debts to pay off creditors during a longer
period of time. Shapiro said he is confident this process will benefit his
company.
“This is going
to actually stabilize the business and properly capitalize the business and
make us a much healthier business going forward,” he said. “We have a very
bright future but I just basically needed to put all the creditors on hold so I
can make it through the winter. We want to emerge from Chapter 11 between March
and June next year.”
Despite filing
for bankruptcy, Shapiro said 2012 has been the company’s most profitable year
to date and that the pub has stabilized itself.
“I am actually
starting to spend a lot more time in [Sweet and Savory] now because the pub is
stable, the food is good, the service has picked up a lot, and now I want to
give some more tender loving care to Sweet and Savory,” Shapiro said. “My plan
next year is that we will be able to make $600,000 to $700,000 and I will be
able to pay off the debt. We are open for business and plan to be for many
years to come.”
