Rudy Giuliani, the former New York City mayor and President Trump ally, is in the midst of a massive personal bankruptcy proceeding, and one of the businesses he’s been using to get back in the black, a Florida-based coffee roaster, has reportedly filed for bankruptcy as well.
In May, Giuliani launched Rudy Coffee, a specialty coffee line with politically themed flavors such as “Fight for Justice” and “America’s Mayor.”
A partner in the venture is South Florida-based manufacturer and distributor of Don Pablo Coffee, Burke Brands. The Daily Beast report.
Burke himself filed for Chapter 11 bankruptcy protection in December 2022, nearly a year before Giuliani, who was ordered to pay $148 million to Georgia election officials in a defamation lawsuit, is set to file for bankruptcy in December 2023.
The coffee brand’s lawyers said: South Florida Business Journal Burke said in May that the bankruptcy was the result of facing financial difficulties during the pandemic and having to turn to lenders with high interest rates.
Just last month, the company emerged from Chapter 11 bankruptcy, saying it had saved the jobs of its 75 employees.
“They kept their customers, particularly their major customers at Costco and Sam’s Club and online,” attorney Aaron Warnick told the Journal.
But later that month, on May 17, the company changed its court-approved plan to repay creditors hundreds of thousands of dollars in two installments, instead asking for monthly payments.
Wernick argued. The Daily Beast The amendment was unrelated to Giuliani’s separate bankruptcy case.
“This is entirely related to the fact that we were planning to make payments to our general and unsecured creditors at the beginning of the year and wanted to spread it out,” he said. “Monthly payments are more cash-flow friendly than a lump sum.”
Independent Wernick and Giuliani have been contacted for comment.
The coffee brand came to the attention of Mr. Giuliani’s creditors last month, who alleged that the former mayor’s contract with a roaster was funneling money into corporate accounts linked to Mr. Giuliani and diverting revenue from debts.
“More than five months ago, the Debtors entered into bankruptcy proceedings. One may wonder what was accomplished during that time. An objective review leads to one conclusion: the Debtors have accomplished very little,” they argued in a court filing last month.
They also slammed the Trump adviser’s “gross spending habits,” highlighting “60 deals with Amazon, entertainment expenses including Netflix, Prime Video, Kindle, Audible, Paramount+, Apple services and products, and numerous Uber rides.”
On Friday, the judge overseeing Giuliani’s bankruptcy proceedings approved a plan to hire Sotheby’s International Realty to sell the former mayor’s multimillion-dollar mansion, calling it “the exercise of sound business judgment.”
The former New York City mayor’s bankruptcy could cost him his apartment, jewelry and his prized Joe DiMaggio replica shirt.
