The Early Men from Missouri

By John M. Olney, December 31, 2008
Copyright and all rights reserved, Wine Country Marketing and Promotions,
1325 Imola West, #409, Napa, CA Phone: 707-299-9548
Web site: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com

What makes Napa - the city - so great today is its position as a fulcrum between its valuable ties to the wine industry of our county and the San Francisco business environment and its connections north, south, east and west, around the world. This importance was also prevalent before Napa County became known as “Wine Country.”

So, who would you think is the first most famous personality to not only visit Napa but also figure so significantly in its earliest history and notoriety? Although very tempting, you should step outside the box by not limiting your thinking process to the first Caucasian settlers like George C. Yount. Our mystery celebrity preceded Yount!

Nope! You should not be focusing on the American Indian Natives or even the Spaniard or Mexican rulers of the Alta California lands, although they played a significant role in establishing the fame of our mystery celebrity.

Don’t even look to our wine industry! He was here way before the knowledge that Napa County could possibly produce wines on a par with the great and old European family establishments who have been producing classic wines for centuries.

I’ll give you another little hint: The year was 1829 making him only 20 years old when this Missourian first visited the Napa area.

Still don’t have it? Okay, here’s another hint: He was close friends with the family of former Governor of Missouri, Lilburn Boggs who later became a permanent resident of the city of Napa. Interestingly enough, while then Missouri’s governor, Boggs was the man who ordered the Mormons out of Missouri because of their different way of life and the conflicts of that lifestyle with the mainstream of the times.

The then leader of the Mormons, Joseph Smith, because of the Governor’s expulsion orders, “prophesied“ that the Governor would die from an act of violence within about a year’s time. Smith reportedly proceeded to hire a man known as Orin Porter Rockwell to “accomplish” his prophecy. Although the attacker of Boggs failed in his attempt, he did cause serious long term physical harm to the ex-Governor.

Another Mormon of the times was Sam Brannan, creator of Calistoga, the northern most town in Napa County, and a leader ,who in 1846, brought a group of 240 of the expelled Mormons to San Francisco by ship via the Cape. Brannan was once considered the heir-apparent to Joseph Smith’s leadership of the Mormon faith. But, we’ll discuss Sam later.

Don’t have it yet? A final hint: The mystery man’s family was long term friends of the family of ex-Missourian Governor Lilburn Boggs. Boggs was married to the granddaughter of the famous frontiersman, Daniel Boone who was then residing in Missouri. The family of our mystery celebrity had purchased land from the Daniel Boone family and it is where he was raised. The families of the Boone’s, Boggs' and our mystery celebrity were all friends and entwined.

Although many historians write glowing remarks about this mystery celebrity, they fail to report on the international political environment at that point in time and how the politics of the period influenced subsequent actions, including those of our mystery celebrity. Let me give you just the major highlights:

The Indian tribes were indigenous but were being “manipulated” by first the Mexicans, then the Spaniards, then back to the Mexicans, but the Indians were basically ”in control” of their daily life.

The Mexicans had kicked out the Spaniards but were stretched thin and vulnerable to outside powers conquering their western land holdings, including Alta California. They had much internal strife which weakened their resolve to hold on to these north western lands. In attempt to control access to their lands, the Mexican government required all foreign visitors to the area to seek and be issued a “Passport” to enter and remain in the Alta California. Two Caucasians were given the power to issue these passports and they were John Sutter (located near Sacramento) and John Marsh (near Mt. Diablo).

The British were sailing off the Pacific shore with great interest in the western land and its bountiful natural resources while the French were busy in the Louisiana Territory. And, both were in dispute with each other.

The Russians, because of their growing financial difficulties, were actually dis-interested in the western states except for the food items that could be grown to be provided to the employees and their families of the Russian American Company and its lucrative fur/skin industry in Alaska.

Washington D.C. was developing its “Manifest Destiny” philosophy where it believed it was right for the Americans to control the land from the Atlantic to the Pacific Ocean. The Americans, hearing and reading all the stories about the abundance of resources out west and the assurances of the great American “Destiny,” packed up, and in mass wagon trains, penetrated into the American Indian and Mexican lands. There is no doubt that these wagon trains would cause the American Indians and Mexicans to use force to cease the invasion of these foreigners, the Americans.

Our mystery celebrity met, in Missouri, one Lieutenant John C. Fremont in 1842 and was hired by him to guide his Washington D.C. sponsored “survey party” into the west several times. During these illegal excursions into Alta California, and I say “illegal,“ because the survey party did not request nor did they obtain passports to be in the area as required by the Mexican Government who clearly and undisputedly controlled the area at the time.

Our celebrity figure was often the subject of Lieutenant Fremont’s reports back to Washington D.C. and he mentioned the feats of the mystery celebrity in such glowing terms that one might think the Lieutenant was the Publicist for our mystery celebrity. These stories were often blown out of proportion creating a false sense of the “good deeds” of our mystery celebrity.

However, review of the works of many historians show that our mystery celebrity was merciless in not only chasing and corralling the indigenous Indians but also in frequently massacring them; man, woman and child. Remember, during this timeframe, the Indian was indigenous to the area, i.e., owned the land, but could not stop the Mexican government from controlling its use and access. Thus, the true invader was the American Government via the Fremont Survey Party and other such transgressions into Alta California and not the American Indian or the “Californios” as resident Mexicans were called in Alta California. Separating fact from fiction and fable about this frontiersman is probably a lifelong single mission for a historical writer.

On one occasion, in 1843, our mystery celebrity guided the Lieutenant’s survey party into the Napa/Sonoma area. The Mexican government heard about this illegal entry and sought out the Lieutenant to find out what his intentions were in Alta California. The Lieutenant explained that he was “just surveying the area.” The Mexican government ordered his party out of the area and Fremont promised he would go to Oregon and other lands out of the Mexican jurisdiction. But, Fremont doubled back out of sight of the Mexican authorities.

This was about the time of the start up of the “Bear Flag Revolt of 1846’ which was the first, but ill-fated attempt, to take Alta California from the Mexican land holdings. Fremont and our mystery celebrity knew that Mexican messengers were on their way to the Napa area with some sort of secret instructions. Our mystery celebrity asked the Lieutenant what to do about “prisoners of war” and received the response from the Lieutenant that there were no provisions for prisoners. So what did our mystery celebrity do? He assassinated three very prominent Mexican citizens - two Haro brothers and a Berryessa - as they landed at a dock along the shores of what is now San Quetin Prison.  (Originally I had reference a Napa River which I subseqently found was erroneous information)   Within a few days American forces arrived, disbanded the “Revolter’s” and claimed California as part of the U.S.A. This was just one event of the U.S - Mexican War of 1846-48 which the Americans won and California, along with some other states, became the property of the U.S.

Many historians write about the exploits of our mystery celebrity in very glowing terms but in actuality, he was a dangerous man who would do what ever was necessary to expeditiously accomplish the task at hand. Historians write about his care for the American Indian which they claimed is proved by his marriages to Indian women, his knowledge of their languages and seeking roles in the administration of Indian affairs. This writer does not yet accept this interpretation. It should be noted that our mystery celebrity and the Fremont party were the invaders of foreign owned land and its residents had the right to protect their homeland; not the opposite as so many writers jump to conclude.

I would like to see a psychologist interpretation of the events surrounding the actions of our mystery celebrity. Why? Because our celebrity gained such undocumented and unsupported notoriety as to his alleged “noble and heroic feats,” he was thus held in the very highest esteem in government circles in Washington D.C. who didn‘t understand, or didn‘t want to delve into the real facts, because of the mood swing to the “Manifest Destiny“ concept of why American could justify its expansionism tactics.

Our mystery celebrity frequently was in need of financial support and because he knew the area, and indeed many of the Indian languages, the government gave him jobs in administering Indian affairs based on his credentials as established by others who had their own missions. In his earlier escapades in the western area he is known to have chased out and murdered Indians from California to the Washington border. In his later life, our mystery celebrity very ably and forcibly marched Indian tribes from the natural lands to isolated and desolated new homelands under Washington D.C. orders.

A hero not, in my opinion, but a well known celebrity he was! He was uneducated and thus easily fit the subtle needs of the Washingtonians who were bent on expansion to the Pacific Ocean. He was the one and only Kit Carson!

COPIA/GARRY MCGUIRE PROBLEMS AHEAD

A CHRONOLOGY OF

HODGE PODGE ATTEMPTS TO STAY AFLOAT

'

By John Olney
December 9, 2008. Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com

I have been asked why I have written what I have so far about COPIA, and in particular, why I have focused so heavily on Mr. Garry McGuire. It is even said that I have a vendetta against the man! Nothing could be further from the truth.

I have been evaluating the performance of COPIA since back in July of this year with the thought of how the complex and land could be better utilized than under its current “model,“ as Mr. McGuire likes to describe what he is attempting to accomplish. I have some concepts for the use of the complex and grounds that I will reveal at a later date. But, listed below is what I base my observations and conclusions upon,

I have visited the site eight separate times during different days of the week and at different hours of the day.

I photographed seven of my visits so I can provide physical evidence of what I comment about concerning the attractiveness of COPIA and its appeal to the public.

I have read every article published in all the Bay Area newspapers and compared the quoted comments made by Mr. McGuire and other COPIA officials

My professional background includes extensive use of operations analysis techniques while working on both contracted military and civilian programs and projects.

Based on my findings to date, I am able to say he is the wrong person for the job of heading up COPIA and what it was intended to be. He is even more inappropriate as its leader to attempted to work COPIA out of its financial disaster through its Chapter 11 bankruptcy reorganization.

Why do I say these things? Because Mr. McGuire, instead of solving the problem of the existing COPIA, prefers moving COPIA concepts to distant cities and convert these “satellite franchises” into for-profit ventures.

What I fail to understand is where is IRS/GAO and their making a determination about the legitimacy of the COPIA non-profit status while it spends alleged tax exempt money to establish for-profit COPIA satellite “franchises?” They did such a review previously, but before Mr. McGuire’s announcement of the grandiose “franchise” COPIA concept which was first reported upon by back on July 20. 2008, by Andrew McIntosh of the Sacramento Bee. He provided the information about the IRS fine that was leveled against COPIA for operating like a for-profit company.

The July 25, 2008 Napa Valley Register article, "Copia: We are integral to Napa - Leaders cite ambitious plan for financial stability" by David Ryan, NV Register City Editor, quotes Mr. Garry McGuire written statement that says: " ... In the past four months we've made significant progress in moving toward our goal of becoming the leading consumer wine and food destination, both on our campus and online." (Highlighting by John Olney) Now, here is the subsequent chronology of announcements.

Just over three months later, on October 1, 2008, COPIA/Mr. McGuire announced that it was cutting back its operating schedule to weekends only and would be closed Monday through Thursday. Furthermore, COPIA would only keep open the retail store, Julia’s Kitchen and the garden.

Mr. Franson, in his October 16, Wines & Vines article, "Copia Struggles for Relevance," writes that: "McGuire said he wants to keep the restaurant, upcoming wine bar and store, but he welcomes complementary tenants. He's talked to nonprofit groups that are potential tenants, such as the Napa Valley Museum, but they have their own financial problems. “

I fail to understand how such a “free rent" offer would benefit the COPIA bottom-line, the bondholder's investment and the bond insurer's possible liability. And, what guarantee would COPIA have been able to provide a non-profit if they gave up their current location and moved into COPIA that they won't be evicted should COPIA go bankrupt and the bondholders seize the property? The non-profit, free rent tenants would have to scramble to find another location.

About a month later, a November 11, 2008, article in Wines & Vines, titled, “Nonprofit to downsize Napa operation and open San Francisco site,” by Paul Franson said “The headquarters of the nonprofit Copia Foundation -- and, so far at least, Julia's Kitchen restaurant and the expanded Cornucopia gift store -- will stay in Napa, if not necessarily in the existing building. McGuire says Copia Napa will also have a large wine bar, but arrangements for such a site seem to be on hold until plans are settled.”(Highlighting by John Olney)

These all seem to be for-profit types of business activities not those normally associated to non-profit organizations.

An article titled “Copia looks to sell, but stay,” dated, November 13, 2008, by Jennifer Huffman and Kevin Courtney of the Napa Valley Register, contained the comment from Mr. McGuire: “We are committed to Copia’s home base and headquarters remaining in Napa,” wrote McGuire. “The core business of Copia is healthy and growing.” However, Copia’s $78 million bond debt “is not sustainable,” he rote. “The best solution is to move Copia to a facility that is not encumbered by so much debt,” and get the highest price for the property itself, he wrote. (Highlighting by John Olney)

If COPIA was so healthy why did they have over 380 vendors on their creditors List?

The article, “No comment from Napa food and wine center’s CEO on fate of Wine Country site,” by Diane Peterson of the Santa Rosa Press Democrat, dated November 13, 2008, reported that Mr. McGuire said, “Our intent is to always operate a Napa Valley campus as well as expand to San Francisco,” McGuire said in his e-mail.

An article by Steve Hart in the Santa Rosa Press Democrat, “Cashless Copia closes - for now. Food, wine center in Napa has been losing about $4 million a year since 2001,” dated November 25, 2008 says a lot. “In September, Copia said it would adopt a new business model, using its food and wine experts to produce cookbooks, recipes, exhibits and courses to be taught on site, on TV and online…..‘The core business is shifting away from a museum and a discovery center and toward producing original content and distribution of food and wine knowledge,’ said McGuire. ‘It's a completely new business model, but part of itstays the same‘…..Copia also planned to open a 40,000- to 50,000-square-foot satellite campus in San Francisco that would include a TV studio, wine classes, wine bar and retail store….‘There are 16 million tourists a year who come through San Francisco,’ McGuire said in September…. ‘We're hoping we can reach them in San Francisco and share some of the food and wine education with them.’…..‘Copia also planned to get into the tourism business, providing Wine Country educational tours from the city,’ he said.” (Highlighting by John Olney)

I wonder if Mr. McGuire has conducted a market assessment/feasibility stury to make sure he doesn't get the same results that Napa COPIA has
experienced?

In the British wine magazine, Decanter, in an article titled “Copia 'will re-open 1 December,” dated November 24, 2008, written by Adam Lechmere, it was reported that Mr. McGuire said, “Lastly he stressed, 'We are committed to Copia's home base and headquarters remaining in Napa.' “

An Online Staff article for the Napa Valley Register titled “Copia closes through Thanksgiving, maybe longer, ” of November 24, 2008, says “Any long term plans and any potential reopening date announcement is not going to come until after the Thanksgiving holiday, according to Copia's public relations group. "

"Copia, a Food and Wine Center, Files for Bankruptcy'" article by Julia Moskin and Kim everson, New York Times dated December 2, 2008, said “Recently, Copia has tried to act more like a community center, showing classic movies, offering gingerbread-house-making workshops, and planning a hot-chocolate party at the end of the Napa Holiday Parade last Saturday."

Clearly, all of these proposed concepts and programs look like a hodge podge to me. I do not see the intent of the orginal COPIA concept and certainly the concepts do not sound like “education.” Rather they sound like profit and return on investment to owners/shareholders.

COPIA is non profit business by which funds were generated to create a center for the education of the public about the values of wine, food and the arts. It derived it’s funding through tax deductible donations and investments. The principal reason for such funding resources is because the underlying premises of the COPIA objectives and missions were not being accomplished by private enterprise. And why is this so? Because the investors in for-profit ventures could not envision COPIA returning them an interesting profit, e.g., return on their investment in the normal time cycle they desire. But investing in a non-profit company that offered them a tax deduction against profits earned elsewhere while also having the “guarantee” that they would receive their principal amount of investment back over a long period, plus earn respectable interest, was obviously attractive.

In a Decmber 3, 2008, Napa Valley Register Editorial it is stated what Mr. McGuire’s intentions are, and very well at that, and I quote, “McGuire has tried to drive the center towards a Web-based, food-and-wine education model that he believes has a chance of success, but is riding into a strong economic headwind. “

Computer tech is the background of Mr. McGuire, but I do not see how that background for a non-profit Napa COPIA to succeed in wine and food education when only housed in a retail store, restaurant and wine bar. Why?

Take wine for example: Non-profit Napa COPIA must buy all its wine products wholesale and offer them retail against well entrenched competition of the 5000 plus wineries of the USA, the strongest wine merchant on the Internet -Wine.com - and all the other retailers such as Wal Mart, BEVMO, Safeway, Longs, etc.

Similarly, any for-profit satellite COPIA operation located elsewhere wishing to focusing on food and wine educational DVD‘s, on-site retail wine sales and Internet sales, restaurants, and chases after establishing tourism from San Francisco to Napa and Sonoma also faces extremely well entrenched competition already located in San Francisco, Sonoma and Napa.

More importantly, I do not believe that what Mr. McGuire envisions as “franchise-able” really is franchise-able! Without using the name COPIA, one could do all that Mr. McGuire purports to be “franchise-able” without buying a “license’ through the non-profit Napa COPIA.

1. One can get and buy wine wholesale from the wineries
2. One can open a tasting bar and sell wine retail
3. One can establish an Internet Web site to sell retail wines
4. One can make DVD’s on wine tasting, food recipes and wine/food parings
5. One can conduct wine country tours

And, each of the above must be done after securing appropriate city, county, and/or state licensing all of which must be done separate from a COPIA “franchise license.”

Normally, when a group wishes to buy a “franchise license” of a on-going business, that business is a proven success. COPIA is a far cry from such a business! I reiterate, Mr. McGuire is not the person who should be left to try to “reorganize COPIA.”

COPIA LOST DONATIONS AND BOARD MEMBERS?

By John Olney
December 8, 2008. Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com

In his Napa Valley Register article of December 05, 2008, “Insurer: Copia's move to Chapter 11 a 'sham' - Copia leaders say ACA to blame in last-minute efforts to sell Napa property,” Napa Valley Register City Editor, David Ryan, reports, “In a separate court filing, McGuire said Copia has been hemorrhaging in excess of $5 million each year, relying exclusively on donations from board members and winery partners to pay its debts.” Ryan goes on to report, “…McGuire said in court documents. “Further, we believe that the organization is no longer able to raise money from trustees and philanthropists to service bond debt.”

These statement speak volumes about the Chapter 11 bankruptcy reorganization possibilities that Mr. McGuire believes he can accomplish. Andrew McIntosh of the Sacramento Bee, said in his December 2, 2008, article, ”Napa wine center files for bankruptcy protection, “McGuire said Copia has secured a $2 million line of credit that will allow the center to pay employees and suppliers. …. The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position our public-benefit corporation to compete more effectively," McGuire said. …. In his statement, McGuire estimated he'll need six months to restructure Copia so it can "achieve profitability and long-term sustainability." He said the center will reopen but did not say when, and no additional information was available on Copia's Web site. “

If Mr. McGuire is so sure about his position, then why are the board members terminating their donations and resigning from the COPIA board? Could it be that they suspect law suits against their actions by the bond insurer and the some 380 plus other creditors that COPIA owes?

Based on my findings to date, I am able to say he is the wrong person for the job of heading up COPIA and what it was intended to be. He is even more inappropriate as its leader to attempt to work COPIA out of its financial disaster through its Chapter 11 bankruptcy reorganization.

The Napa Valley Register article, “The big breakdown - Copia, seeking bankruptcy protection, owes about 385 vendor; 76 in Napa Valley - Copia's creditors: The list of everyone owed money,” December 03, 2008, by Jennifer Huffman, Register Business Writer says, “The bankruptcy filing lists the names of all so-called unsecured creditors to which Copia owes money, and it shows dollar amounts for the 20 creditors owed the most. Winston & Strawn, a law firm with offices in San Francisco, tops the list. Copia owes the firm $250,000.….The non-profit center owes various PR and marketing firms more than $150,000, PG&E $28,364 and Express Personnel $14,810.….Famed San Francisco event planner Stanlee R. Gatti is due $52,974. ….A number of newspapers are listed in the court documents, presumably because Copia is behind in paying its advertising bills. The newspapers include the Santa Rosa Press-Democrat, the Vallejo Times Herald and the Sacramento Bee. Copia owes the San Francisco Chronicle $16,261. (The Napa Valley Register is also listed as a creditor, though documents filed so far do not list a dollar figure.)….Napa-based Liquid Trade Solutions, Inc., a financial firm focused on the wine industry, is due $58,623. ….The second largest local creditor is Classic Party Rental of Napa. Copia reportedly owes the firm $19,631.….Copia also filed special motions for the reorganization, including a plea to pay $187,000 in back payroll and other benefits the center owes employees….”

An article titled “Copia looks to sell, but stay,” dated, November 13, 2008, by Jennifer Huffman and Kevin Courtney of the Napa Valley Register, contained the comment from Mr. McGuire: “We are committed to Copia’s home base and headquarters remaining in Napa,” wrote McGuire. “The core business of Copia is healthy and growing.” However, Copia’s $78 million bond debt “is not sustainable,” he wrote. “The best solution is to move Copia to a facility that is not encumbered by so much debt, and get the highest price for the property itself, he wrote." (Highlighting by John Olney)

It very difficult for this writer to accept Mr. McGuire’s claim that COPIA would
be otherwise healthy if they were not encumbered by the bond principal and
interest while at the same time they list over 380 vendors as creditors to their
bankruptcy proceedings! Mr. McGuire is not the effective CEO to oversee the
reorganization

.
SACBEE writer Andrew McIntosh also wrote an interesting article dated December 5, 2008, titled, “Copia's woes may waste $1 million state grant,” where reports “Copia, the insolvent Napa-based nonprofit, received a $1 million state parks grant from the administration of former Gov. Gray Davis – and taxpayers could lose that money if the wine center sells its property in bankruptcy court…..Copia's potential troubles with the grant stem from a requirement that projects funded by the money stay open to the public for a minimum of 20 years….But even before it filed for Chapter 11, Copia wanted to sell its south garden property and use the $10 million it hoped to get to reduce debt, documents show…..Parks department officials told Copia, however, that if it sold the land and did not relocate state-funded items to public access areas, it would have to refund at least part of the grant, letters show…..Copia said it would relocate the children's garden and planned to refund money for the dais after the land sale….The parks department, though, is not listed as a Copia creditor in the bankruptcy filing. A Copia spokeswoman declined to comment on how Monday's filing affects its pledge to relocate the garden and pay back the money……"

By my e-mail of December 2, 2008, I asked Mr. McGuire to provide me with the sum of money that was raised at the COPIA September 20, 2008, Baron’s Ball in San Francisco and how much of that money remained at the time of the Chapter 11 filing. He has not yet responded to my request. The COPIA Baron’s Ball Web site says, “Proceeds will benefit COPIA’s children’s education programs and environmental and sustainability programs.” Hmmmm? Seems like this fund raiser money and the Parks grant money are doomed!

I reiterate, COPIA needs to look for another CEO to attempt to work it through the reorganization hopes!

Wine Baron's Ball Donation total Raised

Subj: Wine Baron's Ball Donation total Raised
12/2/2008 1:27:06 P.M. Pacific Standard Time

"mailto:Thewinecntryclb2""mailto:Thewinecntryclb2
mailto:amcintosh@sacbee.com", "mailto:dryan@napanews.com", "mailto:mtreleven@napanews.com", "mailto:jbonne@sfchronicle.com", "mailto:diane.peterson@pressdemocrat.com", "mailto:paul@napalife.com", "mailto:info@copia.org", "mailto:editor@decanter.com"

ATTN: COPIA Please pass to Mr. McGuire
ATTN: Decanter Please pass to Mr, Lechmere

To:
Garry McGuire-COPIA,
Info:
Jon Bonne- San Francisco Chronicle,
Andrew McIntosh-Sacramento Bee,
David Ryan, Jennifer Huffinan, Mike Treleven, Kevin Courtney - Napa Valley Register,
Diane Peterson-Santa Rosa Press Democrat,
Paul Franson-Wines & Vines/Napa Life
Adam Lechmere, Decanter

Mr. McGuire:

I have searched the COPIA Web site and the Internet looking for the total sum of money raised at the recent "The Wine Baron’s Ball September 20, 2008" which it is stated that the “Proceeds will benefit COPIA’s children’s education programs and environmental and sustainability programs.”

I have yet to see a total reported. Could you please provide me the total received and the remaining balance as of the COPIA filing for bankruptcy?
Thank you in advance,

Very respectfully,
John olney

COPIA Truth in Finances

COPIA’s CEO Garry McGuire is a very interesting study in contrasting statements to different media sources. Here are just a few examples as they relate to COPIA’s bottom line.

July 20, 2008: Sacramento BEE (SB)- “After his appointment, McGuire told the Napa Valley Register that Copia had broken even for the first time in 2007. Yet a review of its financial statements indicates large losses and negative cash flows for that year.

Asked to reconcile the two, McGuire told the Bee that he meant to say that Copia ‘almost’ broke even if you match operating revenues against expenses, numbers that exclude its debt service costs and its bond payments.

November 24, 2008: decanter.com, (A British magazine and online wine industry information source) - Copia is US$78m in debt – but that debt is tied to the property itself: 'Independent of the buildings, Copia is a healthy business,' McGuire said.

December 1, 2008: Santa Rosa Press Democrat - The source of Copia’s new financing wasn’t disclosed and center officials couldn’t be reached for further comment Monday.

The center’s largest creditor is Winston & Strawn, a San Francisco law firm that handles corporate finance issues. Copia also owes money to a brand marketing consultant, public relations firm, a restaurant group, newspapers, magazines and more than 100 other vendors.

December 2, 2008: SB - McGuire said Copia has secured a $2 million line of credit that will allow the center to pay employees and suppliers.

I fail to understand how on July 20, 2008, COPIA can break even on operating expenses versus patron donations & sales revenues, yet just over four months later, Mr. McGuire announces the acquisition of a $2 million line of credit (LOC) by which to pay over 100 bills (Dec 1 article above) and employee wages & salaries. But, don’t forget, the LOC must also be paid back.

He says in the November 24 article above, that “,,,Independent of the buildings ,Copia is a healthy business.” If it’s healthy then why a LOC to pay vendors for operating costs and good to be sold? If it's "healthy, "why move to San Francisco?

How does Mr. McGuire expect to run at a deficit already without paying on a mortgage yet think that a new landlord will be willing to have him as a renter?

How the heck will he raise new investor capital and sales revenues, not borrowed money, to pay vendors , employee wages and rent to the landlord if he’s closed four out of seven days a week?

December 1, 2008, COPIA FILES FOR BANKRUPTCY

Like I predicted in my article of November 28, 2008, “Copia: Confusion & Dreaming,” late today (Dec. 1), about 4 pm Calif. time, COPIA announced that it was filing for bankruptcy.

I'll have more possibly Tuesday.

From John Olney