Sugarland Bakery owners file for bankruptcy

RALEIGH, N.C. (WTVD) -- Things are not getting any sweeter for Sugarland Bakery.

First, the owner's shut down their two locations in Raleigh at Cameron Village and in Chapel Hill along Franklin Street and now Sugarland Raleigh has filed for bankruptcy protection.

According to the filings, the company lists its assets at less than $50,000 and has debts from $50,000 to $100,000. Plus there are a series of tax liens placed on Sugarland this year for multiple years of unpaid withholding taxes. Sugarland's owners, Katrina and Randolph Ryan, also filed for personal bankruptcy. The IRS is listed as one of the couple's creditors with a federal tax lien of $68,000.

We just told you about Sugarland's problems last week. Couples were frustrated that they paid deposits on their wedding cakes and they only learned the shops closed when they showed up at the business.

The couples said getting in touch with Katrina Ryan was tough, and they were forced to find a different bakery to make their wedding cake. Katrina Ryan told us they were forced to close their business after family medical issues this summer as well as several equipment issues with the business. She also said both Hurricane Florence and Tropical Storm Michael caused flooding in her business along Franklin Street and they just couldn't recover.

Besides hearing from Sugarland customers who want their deposits back, employees also reached out saying the Ryans didn't pay them their wages. The NC Department of Labor tells us there are five active Wage and Hour complaints against Sugarland in Raleigh.

Last week, Ryan did provide a refund form were customers could request their money back (Were you affected? You can fill it out here). She added, "Refunds will be made as part of the dissolution process. State guidelines say that a dissolution can take 60 to 120 days, but we expect everything to be resolved in 30-45 days."