Rudy Giuliani, the former mayor of New York City, is venturing into the coffee business as his financial troubles deepen. The Miami-based roastery behind Giuliani’s new coffee line, Rudy Coffee, is also grappling with bankruptcy.
Giuliani sparked online ridicule on May 19 when he appeared in a computer-generated background to promote Rudy Coffee, his latest product amid mounting legal and financial challenges. However, the embattled Republican is not alone in facing bankruptcy. The company partnering with him, Burke Brands, and its Don Pablo coffee, is also navigating bankruptcy proceedings.
Shortly after Giuliani’s Twitter promo, The Daily Beast revealed the partnership between Rudy Coffee and Burke Brands. Just five days later, Giuliani’s creditors subpoenaed Burke Brands, seeking details about the deal. The subsequent legal filings included an agreement indicating Giuliani would receive 80% of the net profit from Rudy Coffee sales, with proceeds going to Giuliani Communications LLC.
The April 23 contract outlines profits for various coffee bag sizes, estimating $5.039 per 32-ounce bag, $10.285 per four-pound bag, and $14.284 per 76-ounce sack.
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Further investigation by The Daily Beast uncovered that Burke Brands had entered new bankruptcy filings two days before Giuliani’s coffee promotion. The company initially filed for Chapter 11 in December 2022, citing assets and liabilities each between $1 million and $10 million.
A court-approved plan in December 2023 required Burke Brands to pay $100,000 annually in 2024 and 2025, and $200,000 in 2026 to resolve its debt. However, on May 17, Burke Brands sought to alter this plan, proposing monthly payments until January 2025, with full debt discharge by January 2026. No reason was provided for this change, and a hearing is set for June 20.
Burke Brands’ attorney, Aaron Wernick, insisted that the timing of the debt modification request and the Rudy Coffee launch was “completely coincidental.”
“It had completely to do with the fact that we had scheduled all our general and unsecured creditor payments for the beginning of the year, and we wanted to have them spread out,” Wernick told The Daily Beast. “It’s easier on cash flow to have monthly payments rather than big chunks.”
Giuliani recently showcased Rudy Coffee’s roasting facilities in a video, aiming to demonstrate the quality of his product. Giuliani’s team did not respond to inquiries about the coffee partnership’s formation but claimed that the coffee is already selling well.
Asked about Burke Brands’ bankruptcy, Giuliani’s adviser, Ted Goodman, suggested that the former mayor’s involvement could boost the company’s fortunes.
“Maybe some of the mayor’s past success will rub off on them,” Goodman said.
Check Rudy’s videos and some of the reactions below:
100 % Arabica coffee beans roasted right here in America 🇺🇸You will taste the difference! Order today at. https://t.co/9ZXtDxyWdg pic.twitter.com/ViXVvdn2A3
— Rudy W. Giuliani (@RudyGiuliani) May 19, 2024
Rudy gives a tour of his coffee roasting facility for his new Rudy Coffee. pic.twitter.com/DKFpMLwYFV
— Ron Filipkowski (@RonFilipkowski) May 25, 2024
I guarantee it's just private labeled coffee from some local coffee producer.
Rudy doesn't have the money the invest in his own facility.
— Ron Shillman (@shillman1) May 25, 2024
If Rudy is broke who is paying for this?
— mrbigg🇺🇸🇺🇦 (@mrbigg450) May 25, 2024
Ten bucks says he broke into a coffee manufacturer.
— Hoodlum 🇺🇸 (@NotHoodlum) May 25, 2024
I smeel a scam.
— billy buddget (@billy_buddget) May 25, 2024
I'm dying. How the hell did he stumble on to this grift?
— Sarah (@SarahSaysWhatev) May 25, 2024
