Cupcake shop Sugarland has closed both its Chapel Hill and Raleigh locations and filed for bankruptcy protection.
The closings come nearly a decade after former La Residence pastry chef Katrina Ryan and her husband Randolph opened Sugarland Chapel Hill on Franklin Street in 2009. The shop served cupcakes and other sweets and stayed open as late as midnight, serving cocktails, wine and coffee. Sugarland expanded three years later with a Raleigh store in Cameron Village.
Last week Sugarland Raleigh submitted bankruptcy filings, listings its assets at less than $50,000 and debts of between $100,000 and $50,000.
The Ryans also filed for personal bankruptcy, listing debts and assets between $100,000 and $500,000. The IRS was among the couple’s creditors, with a federal tax lien of $68,000.
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Sugarland Raleigh closed this summer and Sugarland Chapel Hill closed this month.
The IRS also appears to be the company’s chief creditor, with a series of tax liens totaling more than $55,000 placed on Sugarland this year for multiple years of unpaid withholding taxes.
Owner Katrina Ryan was reached but said she was unable to comment. Ryan told ABC 11 News that medical issues, bakery equipment problems and flooding from both recent hurricanes contributed to the closures.
The business and couple filed for Chapter 7 bankruptcy, allowing any assets to be liquidated to help pay off debts.