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Boisson shuts stores amid restructuring
US-based alcohol-free retailer Boisson will close all of its stores as part of a restructuring of its business, which will focus on wholesale distribution and e-commerce.
In a statement on LinkedIn on 6 April, Boisson CEO Sheetal Aiyer said the company’s board of directors had decided to enter into a restructuring process as it was in the “best interests of its creditors and other stakeholders”.
The move will involve the closure of all nine retail locations, including its recently opened store in Miami.
Launched in New York City in 2021, Boisson has since expanded to eight stores across New York, Los Angeles and San Francisco, with a ninth store in Miami.
“While this is certainly disappointing, taking these actions will allow the company the opportunity to put forth a restructuring plan aimed to focus on the wholesale distribution and e-commerce divisions, which continue to operate, accepting and fulfilling orders without interruption,” the statement continued.
Boisson increased its revenue by 300% in 2022, compared with 2021. Last year, the firm said it was on track for triple-digit growth in 2023.
‘Insufficient’ resources
Aiyer said the company had been hit by “notable financial challenges in recent months, both in ways to focus investment given the overall complexity of the business as it currently operates, and in broader macroeconomic conditions facing retail and consumer startups”.
He continued: “Significant infrastructure, including fixed costs associated with the retail footprint and bi-coastal warehouse operations further compounded these challenges.
“Without a necessary restructuring plan, the company could not continue operating. Despite concerted efforts to mitigate these obstacles, the resources available were insufficient to sustain the status quo.”
Aiyer also thanked the firm’s shareholders for their support during the transition. Among the company’s backers is French spirits conglomerate Pernod Ricard, which provided US$5 million in funding last September to support Boisson’s global expansion.
Looking to the future, Boisson aims to “focus on the wholesale, e-commerce, and import lines of business to support the non-alcoholic category”, as well as supplier brands and customers, Aiyer added.
The company plans to have “open channels of communication” to keep stakeholders updated, Aiyer said.
“Boisson remains optimistic about the future and is confident that this strategic shift will position the company for sustained success in the evolving marketplace,” the statement concluded.
Nick Bodkins, co-founder of Boisson, also took to LinkedIn to share his response to the restructure.
“First, our failure is not the NA [non-alcoholic] category’s failure,” he said. “No one should consider this anything other than what it is: a failed venture-backed startup that grew too quickly, made mistakes, and wasn’t able to find capital fast enough to continue to build three businesses at the same time (bricks-and-mortar retail, e-commerce, and wholesale import/distribution), which in hindsight, proved to be impossibly hard to execute.”