Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Illinois Beer Distributor Seeks Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: August 9, 2013
Key Contacts
Back
A popular Anheuser-Busch distributor sought Chapter 11 bankruptcy protection in Illinois this week, in the hopes of reorganizing its debt and emerging in a stronger financial position.
Earl Gaudio & Son Inc. officially filed for bankruptcy protection in a U.S. bankruptcy court in Danville, Illinois. A week prior to the filing, a court approved the sale of the company to Skeff Distributing Co., a Decatur-based Anheuser-Busch distributor, according to the East Illinois newspaper the News-Gazette. The company listed between $1 million and $10 million in liabilities in the bankruptcy filing, and between $10 million and $50 million in assets.
However, a family battle over the sale of the company threatens to muddle the court process. In the civil case filed in June, a guardian for Earl Gaudio sought an injunction to remove Earl Gaudio’s son, Dennis Gaudio, and grandson, Eric Gaudio, as officers of the company, according to the St. Louis Post-Dispatch. All three Gaudios hold ownership stakes in the distributorship, the newspaper added. The guardian accused Dennis and Eric Gaudio of breaching their fiduciary duty to the company by incurring debts, failing to pay taxes, and failing to pay Anheuser-Busch for products in dozens of instances.
“As a direct and proximate result of the misfeasance and breach of fiduciary duty by the defendants, Dennis Gaudio and Eric Gaudio, the family owned business that had operated successfully for almost one-half century is now unable to meet its financial obligations and … must be sold,” the lawsuit states, according to the Post-Dispatch.
However, Gaudio’s son and grandson argue that the company’s long-term financial troubles and insufficient liquid assets prevented them from covering their tax obligations, and any negative balances and bounced checks have since been satisfied.
Skeff Distributing Co. noted that it does not anticipate the bankruptcy proceedings or family dispute to hinder its purchase of the company by the end of the year.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.