This Beloved Candy Chain Is Filing For Bankruptcy
This year is nearing its final months, and people spent a ton of time these past few at home. Because of the coronavirus pandemic and stay-at-home mandates, restaurants, grocery stores, and more are struggling. One store that thrives on tourists and in-store customers buying their giant 5-pound gummy bears and famous tins of candy is even filing for bankruptcy. With few visitors in 2020, It'Sugar filed for Chapter 11 bankruptcy in September.
The store has 92 locations in Washington D.C. and 25 states. All shut down in March but reopened this summer. Yet, the store's parent company, BBX Capital Florida LLC, still filed for bankruptcy in the Southern District of Florida court. It is said that even with stores open, the company isn't seeing enough profit to cover rent, according to Eater Las Vegas. Usually, about 60% of their sales stem from people who purchase treats in a store. (You won't be able to find these at a store — here are 15 Classic American Desserts That Deserve a Comeback.)
"As a result of the impact of the pandemic, IT'SUGAR ceased paying rent or has made only partial payments to the landlords," according to a press release. It also says the company has engaged in discussions with landlords and has not seen any termination notices. But "it has received notices of default from the landlords of 49 of its retail locations."
In total, their rent and other obligations equal around $10.4 million. However, all locations will stay open for the time being. This includes those in some of the biggest cities in the country like New York, Los Angeles, Chicago, and Houston. For their location at the Grand Bazaar Shops along the Las Vegas Strip, It'Sugar owes $502,973.28, the Las Vegas Review-Journal says.
The Chapter 11 bankruptcy filing means the parent company can reorganize and pay off their debt. It'Sugar is hardly the first food-related business forced to make the difficult decision this year. Steak chain Sizzler USA filed in September. Maison Kayser bakery did, too. Fast Casual salad chain Garbanzo Mediterranean Fresh filed in August.
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