PROVIDENCE, R.I. (WPRI) – Muse Paintbar is facing $14 million in debt and has been placed into receivership, according to federal court documents obtained by Call 12 for Action.
Muse Paintbar pairs painting classes with food and drinks and has 29 locations in eight states, including Providence and Foxboro, according to the company’s website. Those locations continue to operate.
A lender, Chatham Capital Management, pleaded with the court to appoint a receiver to manage Muse after the company failed to make loan payments in June, July, and August.
Chatham said Muse currently owes $13,955,494.68 and said continuing without a receiver would be “catastrophic” to the value of Muse.
In its court filing, Chatham also said Muse has received default and eviction notices from “various” landlords.
“The Defendants’ financial deterioration has accelerated recently,” the filing said. “The Company will not be able to meet September 1, 2019 rent obligations.”
On Aug. 30, 2019, Katie Goodman of GGG Partners, LLC was appointed as receiver for Muse, giving her control over the company’s assets and operations.
“Receiver is directed to take any and all actions Receiver deems commercially reasonable and appropriate to keep operating the business,” the court order said.
Muse Paintbar was founded in 2012 and has about 300 employees. Despite the company’s financial distress, it is preparing to open two additional locations in Virginia, according to the company’s website.
Muse Paintbar and Goodman did not immediately respond to Call 12 for Action’s request for comment.