A Phoenix-based company specializing in selling and producing tea products has filed for Chapter 11 bankruptcy.
Teaspressa, which was once featured on "Shark Tank," is restructuring its debts under Subchapter V, which will allow its owner Allison DeVane to retain control of the company. The beverage manufacturer, which is located at 2519 N. 16th Street in Phoenix, filed its voluntary petition for Chapter 11 bankruptcy on Sept. 11 in the United States Bankruptcy Court for the District of Arizona. The company was founded and registered as My Little Tea Kettle LLC, doing business as Teaspressa LLC.
The company estimates it has 50 to 99 creditors, noting that after administrative expenses are paid, no funds will be available to unsecured creditors. Assets range between $50,001 and $100,000 with liabilities ranging $1,000,001 to $10 million, but less than $3,424,000 — the cap to be considered a small business debtor. This does not include debts to the owner or other affiliates of the tea company.
Read more of this story from the Business Journal.
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