GLOBAL KEG COMPANY DECLARED BANKRUPTCY

The world's largest beer keg company has filed for bankruptcy due to the pandemic. The headquarters of the company, operating on the market since 2013, is located in Orlando (Florida, USA), and the main clients of the company are the brewers from all around the world.

The company gained a lot of prominence last year after hosting the Global Brewer Fest. As the founder and CEO of company Bob Moore told reporters, "nothing can happen until someone sells something, because sales are the beginning of a stream of income."

At the moment, the company is not selling anything and can serve as an example of what happens to a business when it is completely stopped.

When the pandemic began, leading to the closure of restaurants and bars across the country, it was assumed that the activities would be suspended for two weeks, says Bob Moore. Almost six months have passed since then. As a result, many clients went bankrupt, and kegs that had previously been rented out continued to gather dust in the warehouses. Demand fell catastrophically, having forced the company's management to start reorganizing in order to keep the business.

The representatives of the company state it has filed for bankruptcy protection as required by regulation 11 of the US Bankruptcy Code. Now the company is forced to draw the attention of the authorities to the difficulties that the industry faces on a daily basis. Moore sincerely hopes that the pandemic should recede in the nearest future - only in this case it will be possible to count on the resumption of the regular sales and the attraction of the funds necessary to continue the activities of the company.

Since the beginning of the spread of the virus, about 16,000 establishments of the restaurant business have been shut down in the USA.

This represents about 60% of the total market of the restaurant industry in the country. The highest level of closures was recorded in California, Texas and New York. The pandemic hit the restaurant industry hard in the tourist states such as Nevada and Hawaii.

The experts of the market note that the consequences of the pandemic were not as dire as the initial forecasts suggested. Back in June, the Independent Restaurant Coalition conducted a research, according to which about 85% of restaurants and bars in the country should be closed by the end of 2020. Against the background of such forecasts, the current situation is far from catastrophic. However, the pandemic is not over yet, and only September, not December, is on the doorstep. This means that the Global Keg Company still has a chance of survival if the restaurant business resumes the full-scale activities.