BIRMINGHAM, AL, Nov. 14, 2019—Steel City Pops (SCP), a retailer of all-natural gourmet pops, today announced that it has initiated voluntary Chapter 11 proceedings. The case was filed in the U.S. Bankruptcy Court for the Northern District of Alabama, Southern Division. The action is intended to help SCP preserve value while the management team evaluates strategic options to improve the company’s financial position and strengthen the business.
SCP currently operates retail stores in Alabama, Texas and Kentucky. The company will use the restructuring process to strategically close underperforming locations, and focus its resources and efforts on its most profitable locations.The closure process is underway. SCP will continue to operate remaining stores, including the company’s flagship store in Homewood, Alabama and other locations in the state, as well as stores in Texas and Kentucky. Gift cards purchased at affected locations may be redeemed online.
SCP is a family-owned business headquartered in Birmingham, AL. Since its founding in 2012, the company has grown its gourmet product lines, steadily adding new flavors, while cultivating a vast base of loyal customers. Owner Jim Watkins described the last year as particularly challenging, with rents for commercial retail space rising even as the general retail environment remained weak.
“Although we implemented aggressive new financial controls and operational efficiencies, we’ve been unable to achieve sustainable levels of profitability in certain locations. The decision to restructure the company was very difficult, but we believe it’s the best course of action at this time,” he said.
SCP retained advisors to assist with the restructuring. The team is exploring alternative strategies to harness the value of the company’s brand and products, while providing practical channels for sustainable growth. Among the options under consideration are the expansion of SCP’s wholesale business to give restaurants and other retail outlets broader access to SCP’s unique products.
Watkins concluded, “We deeply appreciate the effort and hard work of our dedicated employees, and we’re grateful for the support of our vendors and partners as we work through this process.”
SCP’s legal advisor in the matter is Benton & Centeno, LLP, of Birmingham, AL.
Jim Watkins; email: [email protected]; Tel: +1 (205) 803-6502