Italian boutique grocer Pusateri's owes creditors more than $8 million from its Yorkville location alone, according to a notice sent to creditors by Albert Gelman Inc., the insolvency trustee assigned to the filings, on Aug. 20.
Scotiabank is the largest secured creditor listed on the notice obtained by the Star, with $4.9 million owed for computers, furniture, inventory, leaseholds, and other prepaid and sundry assets, the notice states.
The five unsecured creditors listed which are owed the most are Roltek International Inc., owed around $9,500; Rahier Patisserie Inc. owed around $8,800; Mary Macleod's Shortbread, owed around $8,200; Bio Raw, owed around $6,400, and Gaucho Pie Co, owed around $6,100.
These figures only include the funds Pusateri’s owes to suppliers for their Yorkville location.
It does not include the money they owe for their other bankrupt entities — Pusateri’s Bayview Village, Pusateri’s Little Italy, Pusateri’s Kitchen and Pusateri’s Financing — which will likely be detailed in documents to come.
The Yorkville and Bayview Village stores and Pusateri's Kitchen were each separate corporate entities.
The creditors, Pusateri’s, and Gelman did not respond to requests for comment before deadline.
The first meeting of the creditors will take place on Aug. 30, the notice states.
Prior to
Friday’s announcement that Pusateri’s would be shuttering several of its stores and putting them into bankruptcy, suppliers told the Star that the grocer was struggling to pay invoices and has left many in the lurch.
The owner of a small business that sells prepackaged organic salads says he has a history of difficulty being paid by the grocer.
Another supplier, with invoices several months overdue, said Pusateri’s was slow to respond to her emails. When the grocer did respond, she was told that the invoices had been entered into their system incorrectly. She refused to deliver more product until they paid her. When Pusateri's finally paid, she ended the business relationship.
One supplier who has been working with the grocer for several years said that Pusateri’s wasn’t always this way; they used to pay promptly, but things have slowed since the pandemic.
Another supplier said he is still owed nearly $2,000 by the grocer and that the payment is more than six months late.
The Star granted suppliers anonymity because they have an ongoing relationship with Pusateri’s and were concerned about future supply contracts.
In an emailed response on Monday to questions surrounding the bankruptcy and the salad company's invoicing, Paolo Pusateri, head of marketing, said the company "has been facing significant financial pressures which have been impacting our operations, not limited to timely and regular flow of merchandise."
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