No soup for you!
Soupman, Inc. (OTCQB:SOUP), the Staten Island-based soup restaurant inspired by the 1995 Seinfeld “Soup Nazi” episode, has filed for Chapter 11 bankruptcy. The Chapter 11 petition was filed in the United States Bankruptcy Court in Delaware.
The company also announced it secured up a $2.0-million bankruptcy loan from an independent third party to keep the restaurant running.
Soupman operates restaurants in the New York area and sells soups online and to grocery stores. It also sells dishes from the Seinfeld episode, including “Mulligatawny,” “Crab Bisque,” “Jambalaya,” and “Turkey Chili.” Soupman Inc. licenses the recipes, likeness, and name of “Al Yeganeh,” the inspiration behind the “Soup Nazi” character on Seinfeld.
Commenting on the bankruptcy proceedings, Jamieson Karson, CEO said, “The combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection. This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers.”
“The ongoing support from our lender through our new DIP facility will allow us to continue business operations as normal. We anticipate that there will be no disruption in the quality of our product or service that we provide to our vendors and customers during this transition period.”
The filing comes less than a month after Robert Bertrand, the company’s chief financial officer, was charged with federal tax fraud charges for alleged misconduct from 2010-2014.
“The Company is deeply shocked and saddened by these events. The Company will be immediately launching an internal investigation to determine whether its public filings need to be amended for the period in question or any subsequent period based upon the allegations,” said Karson. “Moreover, we expect that this news will not make it easier for us to raise the capital we need to remain in business.”
Bertrand was charged with 20 counts of failure to pay Medicare, Social Security, and federal income taxes for the period between 2010 and 2014. During that period, it has been alleged that Soupman’s total approximate unreported cash and stock compensation was $2,850,967.59, and the total approximate tax loss to the United States was allegedly $593,971.52.
The current CEO, Jamieson Karson, joined Soupman, Inc. in August, 2015.
“Soupman, Inc. Files For Bankruptcy Protection,” The Original Soupman, June 13, 2017.
“Soupman Chief Financial Officer, Robert Bertrand Suspended After Being Indicted on Tax Charges,” The Original Soupman, May 23, 2017.