Schmidt’s Bakery Owners Must Settle Nearly $130k in Debt in Order to Re-Open

After news last week that the iconic Schmidt's Bakery and Delicatessen in Loveland had been seized and shut down by the state, many have been wondering what the future holds for the business.  A few additional details have surfaced about the situation, so here's a little update...

According to the Loveland Reporter-Herald, the owners of Schmidt's Bakery in Loveland also own two businesses in Estes Park (which were also seized and shut down): Schmidt's Aisle 2 Bread and Bakery, and Village Pizza.  Each business owes its share of debt to the government, and that debt totals $128,807.  A spokesman for the Colorado Department of Revenue has said that once the businesses settle their tax debts, they can re-open immediately.

On Thursday, owners Tracy and Deb Hilker took to Facebook to explain the situation at Schmidt's.  Here's an excerpt of what they wrote:

In the past year, the new ownership group at Schmidt's has paid over half of Harry Schimdt's past due taxes, our own taxes and paid off bank loans to re-purchase all of the equipment within the business. Additionally, the business incurred expensive upgrades to maintain health code standards with the Colorado Health Department. Despite these expenses, we were just starting to turn Schmidt's around with an amazing staff that have really become a part of our family.

This week the IRS demanded payment on the remainder of Harry's former tax debt and our own personal taxes for the month of December. The total payment was more than we could pull together in a day. Therefore, they seized the business. We are currently working with the IRS to determine where to go from here.

We are devastated for the effect this has on our employees and their families. Over the past year, none of us in the ownership group have received a dime for our work or have misused tax money from our customers. The business has been tight and if the IRS didn't call Harry's taxes due, the doors would still be open.

[via Schmidt's Bakery and Delicatessen Facebook Page.]

Over 40 people are now out of work from this debacle.  For their sakes, I hope these places can re-open, and soon.  My thoughts are with all the employees and their families.

What else have you heard about this story?  Let me know in the comments section below.