In these current trying times, some businesses that once thrived are now in tough financial situations. Often, the only way to remedy this is by filing for a business bankruptcy.
Infinite Spirits Inc., the company known for making Shakers Vodka, is yet another company to recently file for Chapter 7 bankruptcy. However, all is not necessarily over for the brand. For while the bankruptcy proceeding is going to lead to a liquidation of the company, there is the possibility that the Shakers brand of vodka could continue if another company buys it.
Shakers brand of vodka was started in 2003. The alcohol is made from wheat, and once on the market was hailed as the U.S. counterpart to foreign imported vodka.
Early on the company became a success, and had sales reaching more than $1 million. However, now -- mostly due to market conditions -- the company is no longer earning what it once did.
According to the bankruptcy filing, the company has more than $2.2 million in liabilities, but less than $200,000 in assets. These assets are mostly attributed to storage tanks and bottling equipment.
As of now, Shakers continues to be sold on the shelves, and there is always the chance that another company will come along and buy the brand. Who knows? Maybe this could lead to a revitalization of the brand?
But, one thing that is known is that if the bankruptcy is approved, the current owners will no longer have to deal with the financial burden and stress of continuing to operate a company that owes more than what it has in assets.
Source: Associated Press, "Shakers Vodka maker files for bankruptcy," Feb. 4, 2012