In 2016, I was convinced to go into a "50:50 Partnership" with an old high school friend that wanted to expand his gaming business, but could not afford the additional 6,600 square foot of Miramar Road frontage on his own. He talked me into abandoning an expansion project I was already started on and opening a second tasting room in the 6,600 square feet next door to his current business. There would be a craft beer tasting room opened under my business license and alcohol license, and there would be income from the gaming side of the business which he owned. This forecast gaming revenue was the only reason I agreed to go into business with him and rent the space under my LLC. His assertion that two tournaments a month would cover the rent went unrealized. As a matter of fact, there was not enough gaming revenue generated in the two and a half years we were open to cover even one months rent.
From the day we opened, and for the two and a half years we managed to stay open, I did all of the work physically and financially to keep the location open. We ran under water the entire time it was open because the revenue from gaming tournaments that he was supposed to organize was never generated and in the end the location was closed with over $140,000 in past due invoices. Invoices I had to pay for, for items like sales and use taxes, payroll, payroll taxes, merchandise, the cost of the beer made and sold there, insurance, rent, and all of the other items it takes to run a business.
I begged my "partner" month after month for money to assist me with the bills, as it was damaging my brewery by having to pay not only my own bills, but to carry those of the location that we were supposed to be partners in, but his answer was always "I can't afford to help right now, things are tough on my side too".
In the end, he "should" be liable for 1/2 of the operational losses of the DBA ($70,000) but has refused to pay a single dime which could save my business and prevent me from having to file bankruptcy, which is where I am at today.
The bank that has my equipment loan (balance = $38,000) has started the process to accelerate the payoff, which I cannot afford to do or force liquidation. This loan coupled with two other very high interest rate capital loans that I had to take out to complete the tenant improvements at Miramar Road (which ran over 2 times the original estimate) and I sit on $13,000 a month just on those payments.
The three loans combined have a payoff balance of ~$75,000. I was able to restructure one loan, and if I could raise $50,000 I could pay off the equipment loan, one of the high interest rate loans, and then some of the smaller vendor bills that I am past due on.
For this I reach out to you, my friends, my family members, and my patrons that do not want to see the brand go away. I have just gotten started with a very large and reputable distributor which can help lift sales, and with two of the loans paid off and the third reconfigured at a much lower payment I can save what I have invested every day of the last 6 years of my life, and my entire life savings into. Failure to raise these funds will force me into bankruptcy, and the creditors may force me to sell my home to pay off the money lent on personal guarantee.
I do not like having to ask you this, but please help me save my business, and my home.