A foreclosure filing against Lakeland, Florida-based Brew Hub caught some people by surprise last week … including Brew Hub’s CEO.
Brew Hub CEO Tim Schoen cited “miscommunication” between the contract brewery’s majority investor, private equity firm Yucaipa Companies, and Live Oak Bank, for the foreclosure filing, according to an email sent to Brew Hub clients on Thursday.
The Tampa Bay Business Journal first reported the filing, citing Polk County Circuit Court records. Live Oak filed the mortgage foreclosure complaint on Friday, March 28, with the bank claiming Brew Hub defaulted on its loan in October 2024.
The bank stated that it is owed nearly $9.4 million of principal remaining on three promissory notes, with $679,858 in interest. Those amount to $5.6 million in principal on the first note, $1.43 million on a second note and $2.288 million on a third note.
In an email sent to clients on Thursday, obtained by Brewbound, Schoen wrote that the company was blindsided by the legal action.
“I wanted to address a recent issue that has come up between our majority investment group and their bank, which unfortunately led to some miscommunication and a dispute,” he wrote. “Without our knowledge or that of our investors, the bank filed a legal motion regarding the building loan. However, neither our investors nor we have received any official documentation from the bank as of yet.
“Please know that our investor is working diligently to resolve the matter as quickly as possible. We apologize for any inconvenience or distraction this may have caused. I can assure you that this issue will not impact production.”
According to the complaint, Brew Hub entered into a forbearance agreement with Live Oak on February 8, 2024.
According to Live Oak’s complaint, the bank and borrowers entered into a second loan modification agreement on July 17, 2024. A third loan modification agreement followed on September 23, 2024. The filing says a default occurred on October 1, 2024, and subsequent payments haven’t been made.
Brew Hub opened the Lakeland facility in 2014. The company acquired its Lakeland property for $5 million August 2020, according to county property records.
Brew Hub contract produces for around 30 clients at its 75,000 sq. ft. production facility.