Frequently Asked Questions

For additional clarification, here is an overview of the current situation:

  • On April 23, Underground Cellar (UC) ceased operations and declared bankruptcy the following week. The resulting events were reported on in and The Wall Street Journal, among others. You will find more articles with a brief search of 'Underground Cellar' on Google.
  • During the bankruptcy, it was discovered that UC used the bottles stored in the CloudCellar program as collateral to secure an $8M loan that the company later failed to repay.
  • This created an ownership conflict between the lending bank and the customers, both holding legal claims to the wine. A hard-fought conflict between lawyers for customers and the bank ran for over 6 months and with no resolution in sight, on October 13th, the Bankruptcy Trustee moved to abandon the dispute entirely, leaving both sides with nothing.
  • Instead, on November 7th, Judge Karen Owens approved a heavily-negotiated compromise between both groups allowing the customers to receive their wine by paying an additional 21% to their original purchase price, plus preset shipping charges. This was unfavorable to both sides but accepted by customers because in total, paying 121% and receiving 100% of product value (a 21% "loss") is better than having paid 100% and receiving 0% of product value (a 100% "loss"). As part of the settlement, any wine not claimed by customers by December 14th (extended from December 8th) became property of the bank.
  • A copy of the Court Order can be found here, and specific details on claim process and shipping can be found here. Pick-up of the wine is not available. You will see in the document that Last Call Capital has been appointed to manage the claims process, oversee the warehouse operations, and ensure shipments are sent to customers.
  • As a reminder, any unclaimed wine after December 14th was forfeited.
  • Account Questions

    Order & Process Questions