The Blinc Group Inc., a New York-based vaping technology company, has filed for Chapter 7 bankruptcy in a New York court. The petition, signed by CEO Arnaud Dumas de Rauly and submitted on March 14, cited at least $1 million in liabilities.
According to the list of creditors included in the filing, the company appears to have outstanding debts to various entities, including tax authorities, suppliers, media, and public relations firms. Although plant-touching cannabis companies are not eligible for Chapter 7 bankruptcy protection, Blinc identifies itself as a vaping technology company, allowing it to file for this type of bankruptcy. Under Chapter 7, a trustee will attempt to liquidate the company's assets to pay its debtors.
Blinc, a private company, sells its products in 11 states and China. In February, the company launched a new product called TUUN, marketed as its first 2 milliliter all-in-one device with variable voltage and pre-heat on-tap.
The list of creditors includes prominent names in the cannabis industry and other sectors, such as 7Thirty Fund, Arcview Collective Fund, Equitas Partners Fund, Etain Health, various state tax departments, the U.S. Internal Revenue Service, GoDaddy, Google, Hubspot, Microsoft, and several Chinese companies.
The bankruptcy filing highlights the financial challenges faced by companies in the rapidly evolving cannabis and vaping industries, even for those not directly involved in the cultivation or sale of cannabis products.
