The Profit Review

Jackie's Cookie Connection On the Profit - Bankruptcy Filing

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Rachel Galant made good cookies, but she didn't create a good business. That, according to Marcus Lemonis on an episode of The Profit that featured Galant's company, Jackie's Cookie Connection. Lemonis' love for the product was outshone by the poor economics of the business model (which sold cookies for less than the cost to make them) and racked up millions in losses and debts.

Jackie's Cookie Connection, LLC filed for Chapter 11 in December 2018, 2 months before the episode even aired for the first time. By the time Lemonis arrived for filming, the company's lenders were already circling like hawks and the landlord had served eviction papers.

In the bankruptcy filing, Galant estimated assets between $100,000 - $500,000 and debts of between $1 million and $10 million. The top 20 largest unsecured creditors are owed more than $2 million collectively. Her creditors came from all walks of the financial spectrum: factors, online lenders, leasing companies, banks, individuals, vendors, and more. Among them, but not limited to, are:

  • Kabbage
  • Fundbox
  • National Funding
  • Blue Bridge Financial
  • Direct Capital Corporation
  • JCC Financing
  • Crestmark
  • Pawnee Leasing
  • Wells Fargo Bank
  • Ally Bank

Jackie's Cookie Connection was juggling so many lenders that Lemonis stopped to analyze if the company had perhaps defrauded any of them, especially in light of Galant's seeming admission that Purchase Order financing funds had actually been used to pay other business expenses instead of being used to fulfill purchase orders.

Despite owing millions, the company reported in January that it had less than $5,000 in the bank.

You can view the bankruptcy petition filing here

Updated 02-15-2019 at 10:15 PM by The Profit Review

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