Goldman CEO Solomon and Bono Nicked in Sugarfina Bankruptcy
Goldman Chief Solomon, Bono Get Nicked in Sugarfina Bankruptcy
(Bloomberg) -- Sugarfina Inc., the chain of luxury candy shops backed by some of the biggest names in banking and entertainment, filed for Chapter 11 bankruptcy protection as mall-based stores struggle to compete.
Posh candies like Champagne gummy bears for $8.50 and bourbon-and-toffee chocolate bars at $9.50 are part of Sugarfina’s lineup. Locations are scattered around Manhattan landmarks such Rockefeller Center, and other cities that include Los Angeles, Dallas, San Francisco and Toronto, according to its website.
The company listed assets and liabilities of up to $50 million in its bankruptcy petition.
The privately held string of candy boutiques counts rock star Bono (Paul David Hewson) and Goldman Sachs Group Inc. Chief Executive Officer David Solomon among its minority shareholders, court papers show. Neither is likely to see his fortunes seriously impaired, which each of them listed as holding less than a 1% stake.
Private equity firm Great Hill Partners LLC provided $35 million of equity financing to the company in 2017, according to a statement at the time. Sugarfina launched online in 2012 and opened its first boutique in Beverly Hills in 2013.
“Like many retail brands, Sugarfina has been negatively impacted by a challenging retail environment, particularly in malls where many of our boutiques are located,” Sugarfina co-founders Rosie O’Neill and Josh Resnick said in an emailed statement. “We look forward to emerging from this process as a leaner and stronger company, so that we can continue our brand’s mission of spreading sweetness.”
Representatives for Great Hill Partners and Bono didn’t immediately provide a comment. A representative for David Solomon didn’t provide a comment.
The case is Sugarfina Inc., 19-11973, U.S. Bankruptcy Court District of Delaware.
To contact the reporter on this story: Jeremy Hill in New York at jhill273@bloomberg.net
To contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Dawn McCarty
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