RETAIL WINE GIANT FINED FOR ILLEGAL WAREHOUSING

Sam’s Wine & Spirits, the largest wine retailer in the U.S., will pay $300,000 and shut its Chicago store for three days as a settlement with the state. According to Illinois officials, Sam’s violated the state’s liquor laws by illegally warehousing alcohol products, using an illegal third-party marketing company to extort money from distributors and illegally selling alcoholic beverages to liquor stores. As further punishment, store employees will attend a training seminar on selling and marketing alcoholic drinks along with signs posted at cash registers alerting patrons that Sam’s can’t sell to other retailers.

It is the largest fine ever made by the Illinois Liquor Control Commission and comes after a two year investigation into Sam’s business practices. The retailer will close Jan. 1-3 and will empty its 1760 N. Kingsbury warehouse of all alcoholic beverages by May 31. The agreement really only effects the Chicago stores at 1720 N. Marcey which does about $60 million in sales a year. Sam’s claims they did nothing wrong and is simply going along with the settlement so they can move on.