Published
Wed, Feb 14, 2018, 18:53
- The San Diego shop has fallen victim to a predatory lending scheme.
Pacific Beach Vinyl is asking for support to keep its doors open.
The San Diego dealer and wholesaler launched in 2014 and quickly became an important hub for European and US imprints pressing up house, disco, Balearic and world music. Their business hit financial trouble two years ago, when they entered into a bad debt consolidation deal with a predatory lender.
"With growth came the need for expansive working capital," they explain on their GoFundMe page. "PBV navigated a planned borrowing course and a clear path to continue an upward arc. In late 2015, PBV was offered an agreement that would consolidate its existing debt and allow it to grow to the next level and unchain itself from the toxicity of the high-priced loans on its books."
The deal's broker walked away from the financing agreement after 30 days, PBV states, effectively leaving them in the lurch "with extremely strained capital to claw back from ever since." They say the Justice Department confirmed that they were indeed "victims of a criminal predator," however, legal remedies are too costly to pursue.
They've now launched a GoFundMe page to stay solvent, with a rewards list that includes a Urei 1620 mixer, free shipping, an exclusive mix and, naturally, vinyl. Check out the official campaign page here.