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Rochester Bakery Closes for Lack of WC Insurance

State: N.Y.


Rochester Bakery Abruptly Closes after Receiving Fine for Failure to Carry WC Insurance


A month after state officials cited Sugar Mountain Bake Shoppe in Rochester, New York, the business has closed its doors.


The business owners, who began selling cookies and cupcakes in 2007, cleared out most of the store's inventory late Tuesday and early Wednesday, according to an article in the Rochester Democrat & Chronicle.


Though an $18,000 fine last month for failing to carry workers' compensation insurance added to the company's financial woes, the owner of a business that occupies the same space told the newspaper that Sugar Mountain had been struggling for about a year.


Sugar Mountain owner Riley Greider told the Democrat & Chronicle that she and her husband poured about $30,000 of their own money into the business last month. They will work with customers to either refund or fulfill outstanding orders for baked goods.


On Friday, the company's website contained only a photo of decorated cupcakes and the words "We are sorry to say that Sugar Mountain is closed."


Sugar Mountain isn't the first small business in New York to close its doors this year after facing workers' compensation insurance-related expenses. Statewide Fireproof Door Co., based in Brooklyn, sold off its inventory and closed in July after the New York Compensation Insurance Rating Board determined that the company's workers were in the wrong class code. Statewide's premiums rose from $24,000 to $92,000 per year as a result, an increase the company couldn't keep up with.


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