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An Allen-based beverage company under federal scrutiny for claiming its products provide health benefits has filed for bankruptcy.
H2 Beverages Inc., which sold what the company called "hydrogen-enriched water," filed April 23 for Chapter 11 protection in the Eastern District of Texas. A Chapter 11 bankruptcy does not necessarily mean the end of a business. It allows companies to gain temporary financial relief while they attempt to reorganize their debts.
H2 Beverages did not immediately respond to a request for comment.
The company was under scrutiny by the Food and Drug Administration for claiming its products had medicinal properties. In June 2022, the agency issued a warning letter to H2 Beverages CEO Kurt Ruppman Sr. saying at least three drink products misled customers about their alleged health benefits, including Hydro Shot, Silver Bullet Green Tea with Zinc and Hydro Brew Unsweetened Green Tea. The two latter products are no longer available.
According to a document listing its 20 largest creditors, the company owes nearly $850,000 in debt to six creditors — most notably $750,000 to Wellness Program Services LLC, which goes by the business name Trusii. The company, based in southern Florida, sold molecular hydrogen water machines that claimed to heal a variety of ailments, including cancer, lupus and other chronic diseases. The Florida Attorney General's Office filed a complaint in 2021 and sued the company, saying it was swindling consumers who were seeking to improve their health.
H2 Beverages had $500,000 to $1 million in estimated liabilities and $100,000 to $500,000 in estimated assets, according to the bankruptcy court filing. The company is being represented by Brandon Tittle of Plano-based Tittle Law Group PLLC.
H2 Beverage's website claims hydrogen-infused water can help improve the functions in the cardiovascular system, increase blood circulation, improve energy levels and enhance cognitive performance.
Hydrogen-enhanced water is a trend that has been circulating in the health and wellness community for a while. Put simply, it's regular water with added hydrogen gas. Supporters say it can decrease inflammation, boost one’s mood and even slow the aging process; however, medical experts argue more research is necessary to prove its health benefits over regular water.
H2's website currently offers the Hydro Shot beverage, which comes in three different flavors and claims to provide customers with a "mental clarity and boost." The drink contains zero calories, according to the nutrition facts label.
Ruppman signed off on the bankruptcy filings. H2 Beverages was founded in 2015 and has a handful of employees, according to its LinkedIn. It appears it once operated out of Plano at 1601 Summit Ave., suite 100, but has since moved its base to Allen at 912 Presidio Court.
Little else is publicly available about the company. It has a public Instagram page, with its most recent post shared on Feb. 26. Additionally, the beverage manufacturer has previously filed for bankruptcy in the Eastern District of Texas in September 2020, according to the filing.
