Kyle Cook opened up about his financial troubles on the tenth season of Summer House, revealing that his beverage brand is on the brink of bankruptcy.
“I have an investor call tomorrow. We have to talk about how long we can last based on our current cash reserves,” he said in the most recent episode (March 24). He went on to reveal that the reserves would last “six months at most.”
Loverboy was initially founded in 2018. It began as a line of alcoholic beverages but went on to include non-alcoholic drinks and THC-infused sodas. They also have a line of merch, including tees and sweatshirts with the brand name printed across the front.
“To save my business, I had to put $500,000 in,” Cook revealed. “Oh, by the way, I stopped paying myself a salary at Loverboy, so that's one of the reasons I started DJing, to pay the bills.”
Later in the episode, Ben Waddell commented on the situation: “I didn’t realize, but, [Kyle is] personally on the hook for Loverboy. Like millions of dollars. He personally guaranteed a $4 million loan because Loverboy was doing well and it was going up. And there’s $2.1 million left on the loan. So if Loverboy tanks, then he’s bankrupt and he’s lost everything... What must be going through his head 24/7 at the moment is, ‘If Loverboy’s bankrupt, I’m bankrupt also.’”
Cook’s financial troubles are also getting him in hot water with other members of Summer House. When Loverboy was first founded, Carl Radke invested in the business to support his friend. However, when Radke started his own business called Soft Bar, Cook did not return the favor and invest.
In reference to Radke being upset by this situation, Cook said, “I could not have been more clear in December about why I wasn't in a position to invest. Financially, we are in the worst place we've ever been at Loverboy. I'm doing my best not to have to lay people off, and so instead of literally firing my whole entire team, I put $500,000 up to cover payroll."
Summer House airs Tuesdays on Bravo with episodes streaming the next day on Peacock.
