Kyle Cooke's Company, Loverboy, Got Caught up in a Lawsuit in 2021 — Details
The founder of Loverboy opened up about his grave financial troubles in a recent episode of Season 6 of Summer House.
Kyle Cooke, a well-to-do businessman with a reported net worth of $1.1 million, talked about the complications he has had to face after filing a lawsuit against Night Shift Distributing, a craft beverage wholesaler, on behalf of Loverboy.
Here's what to know about the lawsuit.
Inside Kyle Cooke's legal troubles: The 'Summer House' star filed a lawsuit against Night Shift Distributing in 2021.
Kyle founded Loverboy — a fast-growing company currently selling orange chai, hibiscus lime, and white tea peach flavored sparkling hard teas, alongside various spritzes and martinis — in 2018. Night Shift Distributing, a Massachusetts-based wholesaler, came on board in October 2019.
Loverboy terminated the distribution agreement in December 2020. Night Shift Distributing took Loverboy to court on Jan. 13, 2021.
Loverboy hit back with a motion asking to dismiss both their petition and an amended petition on Feb. 16, 2021, as shown by a document published by the Commonwealth of Massachusetts, Alcoholic Beverages Control Commission. Following a considerable amount of back-and-forth, the parties came to an agreement.
According to Reality Titbit, Loverboy and Night Shift Distributing agreed to cover their respective attorney costs and waive their rights to appeal.
A crucial question throughout the legal dispute likely pertained to a new statute regulating the termination of distribution agreements. Apparently, Loverboy terminated the contract shortly before the statute came into effect.
In July 2021, the Massachusetts Alcoholic Beverages Control Commission announced its decision to grant smaller breweries more power to break free from existing distribution agreements without providing a good cause, the requirement that usually locks small companies into dissatisfactory agreements, per Nixon Peabody.
As Kyle revealed in Season 6, Episode 13 of Summer House, however, his finances have taken a severe hit partly because of the case. As he shared, he owes around $4 million. The announcement came as a shock to the whole cast, most of whom were likely unaware of the extent of Kyle's financial troubles.
"I'm in a lawsuit. I've spent $200,000 on legal fees this month," Kyle said on the show, via E! Online. "I'm $4 million in debt with the loan for my business. Everything is on the line."
The same episode cast doubt on Kyle's plans to marry his longterm partner, Amanda Batula, as well. In a tension-charged scene, Kyle got angry because they struggled to find an affordable florist. "We can't even get a f--king florist proposal for less than $15,000," he added. "F--king flowers, dude!"
Viewers immediately took to Twitter to discuss the scene.
"If Kyle Cooke is $4 million in debt maybe he shouldn't drive a $150,000 BMW Alpina when he lives in New York City. Just a thought," tweeted @rahsinthehouse.
"Personal debt is different from business debt. Loverboy is an LLC. Kyle Cooke himself isn’t in debt. They can close the company file for bankruptcy and still have more money than you," tweeted @marysolx3.
Catch new episodes of Summer House Mondays on Bravo at 9 p.m. EST.