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
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
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.