Popular beverage retailer files Chapter 11 bankruptcy
When businesses are built around trends, they run the risk of failing if tastes shift or the trend turns out to be a passing fad. That reality has hit many industries, from self-serve frozen yogurt to plant-based meats and gluten-free products, where demand often proved lower than expected. The same appears true for the nonalcoholic beer-and-wine market, where a retail chain focused on the trend, Boisson, has now filed for Chapter 11 bankruptcy protection and closed its physical stores.
Boisson Shuts Down Stores Amid Bankruptcy Filing
Boisson, a nonalcoholic-beverage retailer that promoted itself as “evolving the way the world drinks,” recently closed all of its retail locations as part of its Chapter 11 bankruptcy filing. The company was founded on the belief that more consumers are seeking nonalcoholic alternatives to traditional alcoholic beverages, a trend that had shown growth in recent years.
“Every day, more of us are looking at labels, researching ingredients, and bringing mindfulness to the food we put in our bodies,” Boisson stated on its website. “And like what we eat, what we drink is changing. Brilliant advances in alcoholic alternatives are helping more of us find healthier alternatives to alcohol.”
Boisson operated five retail stores in New York, Los Angeles, San Francisco, and Miami, in addition to an e-commerce platform. The retail locations have since been shuttered as part of the bankruptcy process, leaving the company to focus on its remaining operations.
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Founder Reflects on Decision
Boisson’s founder, Nicholas Bodkins, confirmed the closure of the stores in a LinkedIn post, explaining that the company’s board of directors decided that a restructuring process would be in the best interest of creditors and other stakeholders.
“Boisson’s Board of Directors has determined that entering into a restructuring process for the company to shift its operational focus is in the best interests of its creditors and other stakeholders. This and other difficult decisions have been made, including the decision to close all retail locations,” Bodkins shared.
Despite the closures, Boisson hopes to continue its e-commerce business and wholesale distribution. Bodkins noted that while the closure of physical stores was disappointing, it would allow the company to restructure and focus on its online and wholesale operations.
“While this is certainly disappointing, taking these actions will allow the company the opportunity to put forth a restructuring plan aimed to focus on the wholesale distribution and e-commerce divisions, which continue to operate, accepting and fulfilling orders without interruption,” Bodkins explained.
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Bankruptcy Doesn’t Reflect Market Interest
Bodkins made it clear that the company’s failure should not be seen as an indicator that the nonalcoholic (NA) beverage trend is dying. Instead, he emphasized that the company’s struggles stemmed from growing too fast and trying to manage multiple business operations at once.
“First, our failure is not the NA category’s failure. No one should consider this anything other than what it is: a failed venture-backed startup that grew too quickly, made mistakes, and wasn’t able to find capital fast enough to continue to build three businesses at the same time (bricks and mortar retail, ecommerce, and wholesale import/distribution), which in hindsight, proved to be impossibly hard to execute,” Bodkins wrote.
Details of Boisson’s Chapter 11 filing are not yet available, and it’s unclear how the company plans to fund its continued operations. However, the founder remains hopeful about the future of the nonalcoholic beverage market and reflected on the company’s past achievements, including serving 250,000 customers.
“Ultimately, my biggest disappointment is not delivering for our team — both current and former. From our dedicated and knowledgeable retail associates and tenacious warehouse team, to our wholesale, ecommerce, operations, and planning teams who dedicated every day to the magnitude of what we were trying to build,” Bodkins concluded.
Looking Ahead
While the nonalcoholic beverage trend may still have momentum, Boisson’s failure serves as a cautionary tale about the risks of expanding too rapidly without the necessary capital. The company’s restructuring and focus on e-commerce may provide a way forward, but the broader challenges of running a business built around a niche market remain.
