Copia files for bankruptcy

By SASHA PAULSEN
Register Features Editor

Copia, Napa’s seven-year old center for wine, food and the arts, filed for bankruptcy on Monday, seeking protection from a crushing debt accumulated from years of operating in the red.

The center closed unexpectedly in late November, without notice to those who bought tickets for events or who had planned to have dinner at Julia’s Kitchen, the restaurant within the center.

Copia officials acknowledged in mid-November that they would seek to sell the center’s 12-acre, riverfront property in Napa’s Oxbow District, even as they hoped to lease back part of the site and launch a new facility in San Francisco.

On Monday, Copia filed for Chapter 11 bankruptcy in United States Bankruptcy Court in Santa Rosa. “The not-for-profit center plans to re-open and operate during the reorganization while management focuses on executing a comprehensive corporate restructuring plan,” stated a press release issued Monday afternoon.

No date was cited for when the center might re-open. The center’s Web site, www.copia.org, listed a full month of activities for December, but the center’s doors were locked on Monday.

Copia has been dark since it closed abruptly Nov. 21, after interim chief executive Garry McGuire called a meeting of employees to announce a temporary closure.

In recent weeks Copia leaders have sought a private buyer for the property, talking to several local financiers.

Ups and downs

The center opened in November 2001, inspired by vintner Robert Mondavi’s vision to create a gathering place to celebrate Napa Valley’s role in the wine and culinary worlds. Mondavi poured more than $20 million into the center, and other vintners contributed $1 million or more.

The center has played hosts to hundreds of concerts, films, wine seminars and events, as well as serving as the location for the Napa Farmers Market, Mustard Festival events, the Strada Dell’Arte and business gatherings.

Yet the center has struggled to find a winning formula, and has lost money since its inception.

Rounds of belt-tightening, layoffs and changes to its admissions policy and programming have taken place over the last couple of years. McGuire became CEO last year and began pushing for changes that would highlight culinary classes and TV programs and would eventually lead to creating a center in San Francisco, where more food- and wine-oriented visitors might support Copia’s mission.

Meanwhile, the Oxbow neighborhood has been transformed in a way that would seem to benefit Copia. Tasting rooms, restaurants and the Westin-Verasa resort have opened nearby.

But the current economic climate has made a turnaround difficult. The center owes more than $70 million to its primary lender.

According to McGuire, “significant improvements in revenue were posted in the last two quarters,” as a result of changes he made after he took over management last spring. “It is estimated that an additional six months of restructuring will be required to achieve profitability and long-term sustainability,” the press release stated.

What’s next

Copia has secured a $2 million line of credit, according to the release, and “is seeking customary authority from the Bankruptcy Court to make wage and salary payments, and to continue various benefits for employees.”

“We recently have taken intensive measures to overcome our deteriorating liquidity position,” said McGuire. “The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position our public-benefit corporation to compete more effectively.”

“We understand how difficult the recent insecurity about Copia’s future has been on Copia’s staff, members and supporters,” said McGuire. “I want to thank everyone for their continued loyalty and dedication as we move forward to position Copia for long-term success.”

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