Trouble in Tasty Town: Candy Store with Destiny Location Files for Bankruptcy
2020 has not been so sweet for a local candy store chain.
IT'SUGAR, which has a location in Destiny USA, filed for Chapter 11 bankruptcy protection last week, according to the company's owner, BBX Capital. After closing over 100 stores for months this year because of the coronavirus pandemic, IT'Sugar simply couldn't cover its losses when stores reopened over the summer.
BBX Capital President Jarett Levan said that the candy company's travel-related sales have typically accounted for about 60 percent of all sales historically, so with significantly less people traveling, It'Sugar was forced to file for bankruptcy.
"While IT’SUGAR commenced a gradual reopening of its stores between early June and the middle of July, as we previously disclosed, IT’SUGAR’s liquidity and its ability to sustain its operations were dependent on obtaining significant rent abatements or deferrals from its landlords, amended payment terms from its vendors, and improvement and stabilization of its sales volumes," Levan said in a statement. "This has not occurred and resulted in the decision to file bankruptcy proceedings. We believe that IT’SUGAR will be better positioned to successfully navigate the effects of the COVID-19 pandemic upon exiting from bankruptcy.”
Levan said IT'SUGAR's retail locations, including the one in Syracuse, will remain open during the bankruptcy proceedings.
IT'SUGAR is located on the top floor of Destiny USA next to Dave & Busters and World of Beer. If you've ever wondered where to buy a giant gummy bear or a Sour Patch Kid pillow, this is exactly the place to find both. The store is packed with color and sugar, as its website would even suggest.
Read more from Jarett Levan on IT'SUGAR's bankruptcy filing on BBX Capital's website.