Shelton Brothers, America’s Influential Importer of Belgian and European Beers, Demands $500K From One of its Distributor For Allegedly Breaching a Contract
March 22, 2021, District of Massachusetts – Plaintiff-Debtor Shelton Brothers, Inc. accuses Defendant Longbow Distribution, LLC of a breach of contract and seeks to turn over the property of the estate under Sec. 542 (b) of the Bankruptcy Code. The amount at issue is $501,127.58.
The alleged facts in the complaint appear pretty straightforward. As per the complaint, Defendant regularly purchased goods from the Debtor and agreed to pay a specific price for the purchase of such goods on net 30 or net 90 terms, depending on the account. Between July 19, 2019, and November 18, 2020, Defendant allegedly bought goods having a value of $505,593.58, but did not pay for them. Plaintiff commenced an adversary proceeding to recover the owed amount for $501,127.58, representing the total balance and value of the goods the Debtor provided to Defendant.
Shelton Brothers Inc. filed for bankruptcy last year in December 2020. The adversary proceeding is being administered in the United States Bankruptcy Court for the District of Massachusetts, Springfield Division, styled as In re Shelton Brothers Inc., Chapter 11, No. 20-30606.