Park Street Imports, a Miami wholesaler, entered into contracts with TTB-permitted suppliers that provided Park Street didn't have to pay for distilled spirits products or wine until it sold products and received payment. Park Street described this consignment deal as "extended payment terms."
The terms of the deal gave Park Street title to the products before it paid for them and suppliers couldn't access or sell the products held by Park Street without its approval. Under terms of the arrangment and in actual practice, TTB said, Park Street wasn't required to pay the suppliers if it wasn't able to collect funds from the buyers.
This scheme went on from January 2019 through January 2022.
TTB accepted a $350,000 offer in compromise from Park Street, which paid $50,000 with the offer and agreed to pay $10,000 a month for 30 months. Park Street also agreed to modify its agreements to eliminate the practice of purchasing products on undefined "extended payment terms," and to pay its suppliers on fixed terms, regardless of when or if payment is received from its buyers.
Park Street also agreed that suppliers that enter into a purchase and/or services agreement with Park Street shall have access to products stored under Park Street's supervision prior to purchase by Park Stret