Underground Cellar, a San Francisco-based firm, may simply be a wine fanatic’s dream: at no cost, clients may purchase and retailer as much as 500 bottles within the firm’s “temperature-controlled CloudCellar” in Napa Valley and ship them (additionally at no cost) each time they needed. It will get higher: the corporate labored instantly with wineries to supply unique wine bottle “upgrades” the place, throughout weekly “presents,” members may buy, to illustrate, a $25 Cabernet for the prospect to be upgraded to a $500 bottle of an identical wine.
Nevertheless, as of late, a lot of Underground Cellar’s clients are something however grateful.
In late April, the wine firm abruptly halted operations, and, a number of days later, filed for Chapter 7 chapter, The San Francisco Chronicle reported. Underground Cellar owes almost $25 million value of wine and different money owed, and a few former clients are actually questioning whether or not the CloudCellar even exists.
Gregg Thatcher, a former buyer, additionally runs a Fb group devoted to discussing the present state of affairs with Underground Cellar. It has almost 600 members.
“It is simply horrifying. Everyone is feeling robbed,” Thatcher advised The San Francisco Chronicle. “Folks constructed up these huge collections and they do not know what they will do. It is a super loss for them.” He added that he himself is owed about $1,000 value of wine, however others are owed tons of of hundreds, with one particular person saying they spent $200,000 on wine they now cannot entry.
Three days earlier than Underground Cellar filed for chapter, Erik Jensen filed a lawsuit towards the corporate alleging fraud and claiming to have almost $3,000 value of wine he can’t retrieve.
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In response to the corporate’s chapter submitting, clients ordered $2.7 million value of wine that by no means even made it to the warehouse.
The character of Underground Cellar’s downfall stays unclear. On its web site, it names “latest market headwinds” and “incapacity to safe financing” in an “more and more difficult capital market” as causes for its resolution to file for chapter.
“I’ve over $3k value of wine of their cellar. What a rip-off. How can this be authorized? I’ve tried calling and emailing and have not heard something,” wrote one person in a Reddit thread discussing the Underground Cellar shutdown.
Regardless of reporting greater than $20 million in income final 12 months, Underground Cellar now has solely $100,000 in money and $328,000 in invoices owed, based on chapter paperwork, per The San Francisco Chronicle. Moreover, the corporate lists bodily belongings value lower than $35,000.
“It is laughable that this complete firm, that is all they are saying they’ve in belongings,” Bradley Coppella, who stated he spent greater than $15,000 on wine with the corporate, advised the outlet.
Entrepreneur has reached out to Underground Cellar for remark.
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