Froyo Firm’s MLB Deals Exposed as Major League Scam by Ex-Employees
In the fall of 2023, the Arizona Diamondbacks celebrated a historic victory as they advanced to the National League Championship Series by defeating the Los Angeles Dodgers. Their excitement was captured in a lively celebration that took place at Chase Field’s unique swimming pool, complete with a popsicle sculpture and illuminated signage of their corporate sponsor, Cremily.
Cremily’s Sponsorships and Promises
Cremily, a company specializing in French frozen yogurt, secured sponsorship rights at Chase Field in January 2022 for over $2.3 million spanning five years. The brand marketed itself as a healthy, lactose-free option, claiming that profits would support the empowerment of women and girls worldwide. The company also entered a similar deal with the Los Angeles Angels, promising over $3.45 million for their advertising rights.
However, just months after the jubilant celebrations at the Diamondbacks’ pool, both the Angels and Diamondbacks filed lawsuits against Cremily for failing to fulfill payment obligations. Employees and business partners came forward with allegations that the firm had a history of making grand promises while evading financial responsibilities.
Leadership and Legal Issues
Steven Delaportas, appointed by founder Kylie Schuyler to lead Cremily, was previously associated with numerous legal disputes over unpaid debts. His charm masked a history of alleged fraudulent activities, raising red flags among employees who later expressed regret for trusting him. According to court documents, Delaportas had a long-standing reputation for mismanaging finances through various companies.
While Delaportas garnered an impressive team of former industry professionals, internal operations at Cremily quickly deteriorated. Reports indicate that many employees felt like they were part of a “ghost job,” completing tasks without genuine direction or productivity.
Cremily’s Business Model Unravels
- Cremily’s marketing materials painted a picture of a successful product created with top chefs and nutritionists.
- Despite promising innovative frozen yogurt, the company struggled with production and distribution.
- Marketing efforts included elaborate advertising campaigns at major sporting venues, yet many complaints surfaced about product quality.
By mid-2023, the shortcomings became undeniable. Court filings indicated that Cremily failed to produce its products at scale, resorting to passing off generic ice cream as its own, despite earlier claims of authenticity. The company was accused of mislabeling and operating without a viable product.
Impacts on Employees and Partners
As problems persisted, layoffs began, and employees started to speak out against Delaportas and the company. Some received alarming emails from an anonymous whistleblower exposing the internal chaos. The growing pressure on the company’s finances resulted in unpaid bills to partners, threatening their operations and livelihoods.
In one notable case, Ronnybrook Farms in New York, which partnered with Cremily, claimed they were owed $196,434.22, an amount that jeopardized their longstanding business. The situation revealed not only the financial irresponsibility of Cremily but also the distress it caused for its partners.
Cremily’s Downfall and Legal Ramifications
As the lawsuits piled up, Delaportas’ misrepresentation and the company’s struggles led to a rapid decline. By the time the Diamondbacks celebrated their playoff victory, Cremily was already facing significant legal challenges and accusations of operating as a fraudulent entity.
The fallout has left a trail of disgruntled former employees and partners, many struggling to recover from the financial wreckage. Several lawsuits continue to emerge from various parties affected by Cremily’s collapse.
Looking Ahead
Following Cremily’s disintegration, Delaportas is reportedly pursuing new ventures, while former employees are grappling with the consequences of their association with the enterprise. The saga reflects a cautionary tale within the sports sponsorship landscape, highlighting the importance of due diligence and transparency in such partnerships.
