Several weeks ago when the wind went out of Frank D'Angelo's sails at Steelback Breweries, you had a hunch that the other shoe was going to drop. And today, it did.From the Toronto Star:
"Sputtering Steelback Breweries has spun out of the Grand Prix of Toronto. The Grand Prix Association of Toronto confirmed yesterday that insolvent Steelback won't be the title sponsor for next year's car race.
"Steelback will not be returning as our title sponsor," said association president Charlie Johnstone.
Wasanda Enterprises, which has financed money-losing Steelback Breweries and related beverage producer D'Angelo Brands Ltd. since 2002, gained court protection from creditors for the two companies last month.
Court protection under the federal Companies' Creditors Arrangement Act negated all contracts with the two companies including the four-year sponsorship deal for the Grand Prix, according to Johnstone.
"We had been optimistic about them continuing until we saw the extent of their debts in published reports," Johnstone said.
Steelback and D'Angelo Brands owe Wasanda more than $120 million in loans and interest. Court filings show Steelback's spending on marketing and promotion far outpaced its beer revenue...."
...continued at the link above
No comments:
Post a Comment