A significant financial fallout has occurred following the St. Bernard Soap Company's operations shut down, and a court order has now mandated the defunct manufacturer to pay more than $32 million in overdue rent and utility bills. Reports from The Cincinnati Enquirer indicate that the judgment filed in Hamilton County Common Pleas Court includes a staggering $26 million owed in rent through the end of the property's 20-year lease and a $1.35 million bill from Greater Cincinnati Water Works.
St. Bernard Soap Co., which was responsible for the production of bar soap for household names like Ivory and Safeguard under Procter & Gamble before ceasing operations in early 2023, vacated the property by May but left a trail of financial obligations, stopped paying rent in December 2023 and failed to clear debts with local utility providers, the closure of the facility resulted not only in substantial financial burdens for the company's landlords but also in the layoffs of 118 workers, the loss of these jobs epitomizes the tangible impact of the company's demise on the local community.
According to WLWT, the property's current landlord, CAI Investments Healthcare Products, purchased the complex in March 2022 and subsequently sued the tenants, VVF Cincinnati, for not making payments as per their contractual lease agreement. The court has since ruled in favor of CAI Investments, holding VVF responsible for the nearly $30 million in unpaid rent and related liabilities.
"St. Bernard Soap Co.'s failure to honor its contractual obligations has impacted not only the landlord but the greater Cincinnati community, as over a hundred employees lost their jobs and utility companies and local vendors went unpaid," said Alex Durst, attorney for the landlord, in a statement obtained by The Cincinnati Enquirer. Meanwhile, the historical significance of the property cannot be understated. Established in 2003, after being spun off from P&G, St. Bernard continued to contribute to the soap market until these recent financial challenges halted operations, rendering a once-thriving manufacturing site dormant.
While efforts to reach St. Bernard Soap Co. officials for comment have been unsuccessful, Local12 echoes this case, highlighting the substantial sum mandated by the judge to cover the unpaid rent and water bills. This event marks an impactful chapter in the history of the Cincinnati area's industrial and manufacturing sector as it deals with the consequences of a significant corporate contract breach.
