Soupman and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 17-11314. The Company, which manufactures and retails food products, is represented by Christoper A. Ward of Polsinelli.
The Company has secured a new $2 million debtor-in-possession credit facility from an independent third-party private investment firm to finance its working capital needs and allow business operations to continue as normal. Soupman also named Michael Wyse of Wyse Advisors as C.R.O. and interim C.F.O.
Jamie Karson, Soupman’s C.E.O., comments, “The combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection. This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers.”
According to documents filed with the SEC, on May 23, 2017 Soupman’s president and C.F.O. at that time, was charged in Federal Court in Brooklyn, NY with 20 counts of failure to pay Medicare, Social Security and federal income taxes for the period between 2010 and 2014. As alleged in the indictment, from 2010 through 2014, the Company’s total approximate unreported cash and stock compensation was $2,850,967.59, and the total approximate tax loss to the United States was allegedly $593,971.52. Bertrand was immediately suspended from his position with the Company pending the outcome of this matter.
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