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Former Steaming Bean Coffee Co. owner files for bankruptcy

Filing shows more than $200,000 in liabilities – many to local businesses
Erica Fendley, former owner of the Steaming Bean Coffee Co. on Main Avenue, filed for bankruptcy protection on Wednesday. The coffee shop reopened across the street, in the downstairs space of Irish Embassy Pub, but Fendley is no longer the owner.

The saga of Steaming Bean Coffee Co. continues as its former owner has filed for Chapter 7 bankruptcy.

According to the document Erica Fendley filed in U.S. Bankruptcy Court, District of Colorado, on Wednesday, she has almost $202,000 in liabilities and owes multiple local and regional businesses sums that range from just over $100 to several thousand dollars.

Fendley closed the doors of the coffee shop at 915 Main Ave. on March 5, claiming irreconcilable differences with the landlord.

But more than $50,000 spent on a remodel to the Steaming Bean’s former space came to light when local contractors filed mechanic’s liens to collect for unpaid work.

According to her bankruptcy filing, Fendley owes $25,000 to Skywalker Construction, $8,200 to BOSS Mechanical, $3,500 to Telluride-based roaster Steaming Bean Coffee Co., $3,246 to local bakery Bread and $1,149 to Ska Brewing Co., among other claims.

Equipment, fixtures and furniture were repossessed and sold to compensate businesses for $6,310.

Unlike Chapter 11 bankruptcy, Chapter 7 – the most common form – requires debts to be paid through liquidation of the debtor’s assets instead of renegotiating with the lenders.

Fendley could not be reached for comment Thursday but has said in previous interviews that she had no ill intent, and she attributed part of the issue to a lack of business expertise.

In an email sent Thursday, James Giorgio, owner of the building at 915 Main Ave., called the situation a “hijacking of an institution and the manipulation of people to achieve that end.” Giorgio lives in New York.

“The closing of this store is not an issue about live music or construction cost over-runs, or the Landlord vs. Tenant narrative,” he wrote, negating what he and Fendley have told The Durango Herald in previous interviews.

Neither would disclose the rent in previous interviews, but Giorgio said Thursday that Fendley’s rent was about $75,000 for the 20 months she owned the business.

Giorgio has said repeatedly that he tried to prevent the Steaming Bean’s closure and wants the 915 Main Ave. property to remain a coffee shop.

“Some of the significant payees listed in the filing met, and we tried to broker a deal where I was going to give (Fendley) a rent concession of several hundred,” he said. “We were going to defer those payments until she got back on her feet, and I’d help on cash flow. But when push came to shove, it didn’t work out.”

Last week, Steaming Bean reopened in the basement space of Irish Embassy Pub across the street, at 900 Main Ave., where Fendley is the manager but no longer a business owner.

The 915 Main Ave. building is open for lease.

jpace@durangoherald.com

Steaming Bean bankruptcy file (PDF)

Mar 15, 2016
Unpaid bills contributed to Steaming Bean Coffee Co. closure
Mar 4, 2016
Steaming Bean in Durango gets reprieve with new location
Mar 1, 2016
Steaming Bean Coffee Co. to close doors Friday in Durango


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