Copia files for bankruptcy
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Copia, the Napa wine, food and arts center, filed today for bankruptcy. Register File Photo |
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By SASHA PAULSEN
Register Features Editor
October 28th, 2009
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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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Dwayne wrote on Dec 1, 2008 4:44 PM:
MP wrote on Dec 1, 2008 4:55 PM:
Rob C wrote on Dec 1, 2008 5:07 PM:
Officials, you need to check who is maintaining security and public liability insurance on the property. This building is right on the river and it will quickly transform into an attractive nuisance.
Claims will file against deep pockets and since Copia no longer has any, municipalities (taxpayers) are likely next on the list. "
tfytmp wrote on Dec 1, 2008 5:29 PM:
Explorer wrote on Dec 1, 2008 5:45 PM:
I was brought in fairly early in this project as a consultant. I've worked with many non-profits in the past and know that there is not a lot of money to go around to hire skilled executives. However, the executives at Copia were some of the worst I've ever worked with.
I've never cared enough to look who was on the board of Copia but whoever they were, they did not do their job.
It's a shame they failed. The idea is sound and a strong Copia could really help create a strong Downtown Napa. Hopefully the new CEO can create a business that will thrive. "
bob wrote on Dec 1, 2008 6:03 PM:
cedwardswine wrote on Dec 1, 2008 7:35 PM:
shareathought wrote on Dec 1, 2008 8:52 PM:
Could our community raise that kind of money? "
pernodboi wrote on Dec 1, 2008 9:10 PM:
Don't other cities own their convention centers? "
missmarvelous wrote on Dec 2, 2008 6:31 AM:
skippert wrote on Dec 2, 2008 6:51 AM:
tfytmp wrote on Dec 2, 2008 7:16 AM:
JustAnotherManicMonday wrote on Dec 2, 2008 7:54 AM:
Shareathought: Get your head out of the clouds, no city now has money to buy a building. Hold onto your cash guys it's going to be a tough economic road ahead. "
selim wrote on Dec 2, 2008 9:43 AM:
And tfytmp, as much as you seem to like the idea of sticking it to the Mondavis, it's not in anybody's interest to let this building sit unused. You want us to wait for the Mondavis to pony up more cash for this? Forget it. It's like all of us waiting for Altamura to swoop in and be responsible & realistic with all of his downtown properties: IT WON'T HAPPEN.
The chamber of commerce AND the city AND the county need to get together to rebrand Copia as a convention center. Regardless of your opinions of Copia, we in Napa are ALL affected by its demise, so we need quick and pragmatic action to ensure we're not right back here again in seven years. It's too good of a spot to let go. "
JimClark wrote on Dec 2, 2008 10:19 AM:
jmo wrote on Dec 2, 2008 11:01 AM:
Are you sure you meant to use “cultrate" as a descriptive adjective of your feeling of Mr. Mondavi; if so, why? Do you really think that poorly of Mr. "sharp-edged knife" Mondavi and all he has done for the valley and Napa? "
db76 wrote on Dec 2, 2008 11:46 AM:
lizbuttermaker wrote on Dec 2, 2008 12:01 PM:
citizen wrote on Dec 2, 2008 12:58 PM:
I propose that the city take over Copia, open a grand downtown movie theater, a play house for local theater, various children's programs, and other great venues that will serve locals and tourists alike. Involve the locals, not just the tourists, give all locals a 10% or 15% discount and be a success.
This is a great opportunity to get locals down town again supporting local businesses. Me? I rarely go down town because there is nothing there for me, as a local. "
mikeb wrote on Dec 2, 2008 1:18 PM:
tuareen wrote on Dec 2, 2008 2:14 PM:
Dwayne wrote on Dec 2, 2008 3:31 PM:
Ruff Limblog wrote on Dec 2, 2008 4:01 PM:
Notice that most of the squawkers don't say anything about what to do next?
The area has new hotels in the area and new restaurants, etc.
"We" should explore reasonable things to repurpose the building. The County, the City and the College could form a consortium to utilize the facility because the police are going to have to guard it anyway.
There's an excellent auditorium there and while I am not sure how many seats are there (been there but never bothered to count), but it could very easily become a TV studio I should think.
The cost of TV production is dropping like a stone and a the college drama and audio/visual folks would likely think it was pennies from heaven.
I'd like to see more local talent on display in such a venue.
Maybe Frances Ford Coppola could give the college some pointers on how to use the Copia building.
~Ruff "
Sassy1 wrote on Dec 2, 2008 4:55 PM:
what about our kids? Wonder why they just wander the streets....
Again I say HOW ABOUT US WE THE PEOPLE WHO LIVE HERE IN NAPA EVERYDAY ........ "
Rob C wrote on Dec 2, 2008 4:56 PM:
"Reasonable" things will require satisfying liquidation requirements. And while it will discount significantly, it won't be free. Anyone who thinks the city or county is going to waltz away with the assets to enact some vision of unicorn-land is in for an awakening.
And even if local government could magically gin-up debt-free millions, don't you think they should use that money to fix the roads or pay down unfunded pension liabilities? "
Sickothis wrote on Dec 2, 2008 5:03 PM:
jmo wrote on Dec 2, 2008 7:20 PM:
Newview wrote on Dec 2, 2008 9:26 PM:
Every time I go to the City Council meeting I see only one other person from the community besides me and her name is Muriel. I think what is happening is we now have Tuesday night ARM CHAIR QUARTERBACKS watching the city council meetings on the local channel.
I would venture to say that the only real problem in Napa is that there are so many couch potato's ARMCHAIR Quarterbacking.
So a suggestion, try to remember those are real people at Copia and they do care about the community they live in and work in. So cut the boloney and stop making generalizations.
A new quarterback rule, the quarterback must use critical thinking constructively when criticizing the subject. Capish? "
jmo wrote on Dec 2, 2008 11:03 PM:
dreamweaver wrote on Dec 3, 2008 12:14 AM:
I also agree with Newview's perspective. Those people who worked toward making Copia a successful venture are real people. I don't care whether you're a Mondavi, a Coppola or a field worker. Underneath it all, we are pretty much the same when it comes to feelings. Keep that in mind. "
Newview wrote on Dec 3, 2008 11:26 AM:
areyoubitter wrote on Dec 3, 2008 9:04 PM:
Your plan sounds awesome! The Cinidome is GROSS! come on people..
I heard all the employees just showed up and Copia was closed?! True or false?
Julia's alone is alot of people.
*The Rolling stones Unauthorized concert there was awesome!!
The concerts were a great idea and I hope whoever will continue this. "
G SQUARED wrote on Dec 14, 2008 1:06 PM: