New York-Based Wine and Spirits Company Files for Chapter 11 Bankruptcy

Broadway Spirits Inc., a retail wine and liquor store based in New York, seeks Chapter 11 protection amid a financial imbalance.

Written By Twinkle Jha
Representative Image, Broadway Spirits Inc. files for bankruptcy (Image credit: Nguyen Hong Quan | Pexels | Created on Canva)

Broadway Spirits Inc. has voluntarily initiated bankruptcy proceedings. The company is a wine and spirits retailer in New York. Court records show that the company’s liabilities exceed its assets.

Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. Broadway Spirits Inc. has filed for Chapter 11 subchapter V, which provides a streamlined Chapter 11 process for qualifying small business debtors. A Chapter 11 filing does not necessarily mean that a business is closing. For additional information, readers are encouraged to contact the business directly.

Broadway Spirits Inc. Files for Chapter 11

Court records, as available on PACER, show that the company submitted its petition on September 10, 2026. The records identify Broadway Spirits Inc. as a small business debtor and show that the case was filed under Chapter 11, Subchapter V.

The petition was signed by Megha K. Duggal, the company’s president. In addition, attorney Kamini Fox of Kamini Fox PLLC is representing the company in the case.

The filing comes as the liquor retail industry in New York faces declining sales and stricter regulations tied to store openings. According to the New York Post, liquor sales in New York declined by nearly 25% in 2025. The State Liquor Authority has also rejected up to 70% of applications for new liquor-store licenses amid concerns that additional stores could pose risks to existing businesses.

About the Company

Broadway Spirits Inc. operates as a wine and spirits retailer through its physical store and online platform. Offerings include wines, champagne, spirits, tequila, vodka, whiskey, and liqueurs.

The company website shows that it provides delivery and shipping services, including same-day delivery in parts of Manhattan and shipping across New York State. It also offers bottle engraving and hosts in-store tastings and events.

Case Related Details

Court records show that the company submitted a summary of assets and liabilities. While the liabilities of Broadway Spirits Inc. are estimated at $1.18 million, its assets are approximately $268,776.

The company’s filings also include a list of creditors with the largest unsecured claims, all of which are disputed. These unsecured creditors include 315 Broadway, LLC, Chase, TD Bank, N.A., and Chase Ink.

Filing records indicate that funds will be available for distribution to the unsecured creditors.

A summary of the Chapter 11 petition is provided here:

  • Filing Date: September 10, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of New York
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11, Subchapter V
  • Case Number: 26-12159-lgb
  • Estimated Assets: Between $100,001 and $500,000
  • Estimated Liabilities: Between $1,000,001 and $10 million
  • Estimated Creditors: 1-49

Previous Filings by Similar Businesses

As the industry faces a downturn, liquor and wine retailers across the state have been seeking Chapter 11 protection.

A Commack-based company submitted its petition on June 1, 2026. Case records show that Long Island Artisan Wine & Spirit Inc. faced an unsecured claim tied to unpaid rent; the claim was written as ‘disputed.’ The wine and spirits retailer provides its services to the Long Island community.

On March 27, 2026, Liquor World of Syracuse, Inc. commenced Chapter 11 proceedings. Court filings showed that the company has more than $1 million in estimated liabilities and faced a declining gross revenue. The business operates as a retail store in East Syracuse.

Broadway Spirits Inc. joins this series of filings, reiterating the pressures affecting wine and liquor retailers across New York.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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