Sugarloaf Mountain Works Inc., Files For Chapter 7 (BBJ Story)
Sugarloaf Mountain Works Inc., better known as Sugarloaf Craft Festivals, has filed for Chapter 7 bankruptcy in the wake of the Covid-19 pandemic, which halted large gatherings and choked off the 45-year-old company's main source of revenue.
Founded in 1975, the Germantown company hosted festivals at the Maryland State Fairgrounds and other locations for artists to display their creations to the local community. There has not been a festival since early March and exhibitors aren't committing to future events given the uncertainty surrounding the pandemic. With no shows planned for the future, cash flow has stopped, the company said in a statement. Sugarloaf filed for Chapter 7 in the U.S. Bankruptcy Court for the District of Maryland on June 15. The document was signed by the company's president, Jacqueline Verdier. Company officials were not immediately available for comment. Sugarloaf estimates assets of between $500,001 and $1 million and liabilities between $1 million and $10 million, according to the bankruptcy filing. Listed creditors include Potomac's XOXO Chocolates, Rockville's Twin Valley Distiller and Woodbridge-based True Honey Teas.