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April 14 2020

Client Alert - Spirits Buy-Back Program

By: Daniel J. Parmeter, Jr.

On April 13, 2020, Governor Whitmer issued Executive Order 2020-46 which authorizes licensees holding a Class C, B-Hotel, G-1, Club, Continuing Care Retirement Center, Aircraft, Watercraft and Train license (collectively, “Licensees”) to request the Michigan Liquor Control Commission (the “MLCC”) to purchase all or part of the Licensee’s unopened liquor inventory (not beer and wine) which the Licensee purchased from an authorized distributor before March 16, 2020.  The purchase price for the liquor will be 100% of the cost paid by the Licensee.

To take advantage of this program, the Licensee must make its request to the MLCC by 5:00 p.m. on April 17, 2020.  Upon such request, the MLCC will have title to the re-purchased liquor; however, as the MLCC cannot take possession of the re-purchased liquor during this emergency period, the Licensee is required to hold the re-purchased liquor for the benefit of the MLCC.  The MLCC is required to take possession of the re-purchased liquor within 90 days of the lifting of the emergency period.

Even though the MLCC will have title to the re-purchased liquor, the Licensee will have the option to buy-back the re-purchased liquor from the MLCC until the day the MLCC take possession of the re-purchased liquor.

If you have any questions regarding this Order, please contact Dan Parmeter or your business attorney at Mika Meyers.