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Chaotic Good appears closed again; EDA flags possible loan exposure
Summary
EDA staff said local business Chaotic Good appears to have closed amid apparent bankruptcy/foreclosure after briefly reopening in 2025; staff noted the EDA holds a subordinated loan ("at least third position") and has had difficulty contacting the business’s owners.
Kasson City EDA members were told that Chaotic Good, a local business that briefly reopened in 2025 after a prior closure, appears to have closed again and may be in bankruptcy or foreclosure. A committee member said the EDA’s loan to Chaotic Good is in at least "third position," creating uncertainty about the recovery of the outstanding balance.
"If you didn't know Chaotic Good is closed again. Um sounds like official bankruptcy foreclosure," a committee member said during the financial report. Staff reported that the borrower has been hard to reach and that when the business last reopened it had a different person handling finances; that person is no longer involved and "now it's just Scott again," staff said.
The committee discussed whether the borrower would consider a petition-and-waiver agreement like one previously used for another borrower (referred to as "crop science") to address outstanding taxes and the remaining loan balance. Staff said they have not yet received a response and will attempt further outreach.
Why it matters: A business failure can affect local economic activity and the EDA’s revolving loan portfolio. The meeting did not include a legal or financial report quantifying the outstanding balance or the expected loss; the transcript records the loan position as "at least like third position," and staff said they were unsure of the exact exposure.
Attribution and caveats: Statements about Chaotic Good’s closure, loan position, and outreach efforts were made by a committee member and restated by staff during the financial report. The transcript does not provide a dollar figure for the outstanding balance or a final determination of bankruptcy; the EDA staff characterized the status as uncertain.
What’s next: Staff will continue outreach to the borrower and explore options, including a petition-and-waiver approach used previously for other borrowers. The EDA did not take a formal vote on the loan at the meeting.
Ending: The board proceeded to other agenda items after the financial report; staff will update the EDA when further information about the borrower is available.
