Underground Cellar, a San Francisco-based firm, might simply be a wine fanatic’s dream: free of charge, prospects might purchase and retailer as much as 500 bottles within the firm’s “temperature-controlled CloudCellar” in Napa Valley and ship them (additionally free of charge) at any time when they wished. It will get higher: the corporate labored immediately with wineries to supply unique wine bottle “upgrades” the place, throughout weekly “provides,” members might buy, for example, a $25 Cabernet for the possibility to be upgraded to a $500 bottle of an analogous wine.
Nevertheless, as of late, lots of Underground Cellar’s prospects are something however grateful.
In late April, the wine firm abruptly halted operations, and, a couple of days later, filed for Chapter 7 chapter, The San Francisco Chronicle reported. Underground Cellar owes practically $25 million price of wine and different money owed, and a few former prospects at the moment are 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 practically 600 members.
“It is simply horrifying. Everyone is feeling robbed,” Thatcher advised The San Francisco Chronicle. “Individuals constructed up these huge collections and they do not know what they are going to do. It is a large loss for them.” He added that he himself is owed about $1,000 price of wine, however others are owed a whole bunch 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 practically $3,000 price of wine he can not retrieve.
In accordance with the corporate’s chapter submitting, prospects ordered $2.7 million price 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 “lack of ability to safe financing” in an “more and more difficult capital market” as causes for its determination to file for chapter.
“I’ve over $3k price 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 consumer in a Reddit thread discussing the Underground Cellar shutdown.
Regardless of reporting greater than $20 million in income final yr, Underground Cellar now has solely $100,000 in money and $328,000 in invoices owed, in line with chapter paperwork, per The San Francisco Chronicle. Moreover, the corporate lists bodily belongings price lower than $35,000.
“It is laughable that this complete firm, that is all they are saying they’ve in belongings,” Bradley Coppella, who mentioned 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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