Brewery Ownership Update: Fish Has New Owners; Granite City Files for Chapter 11

Fish Brewing of Olympia, Washington, Has New Owners after Receivership

Olympia, Washington-based Fish Brewing Company announced Tuesday that it has been sold to Josh Carrigan and Kate Craig after entering receivership earlier this year, the Olympian reported.

A receiver was appointed in May to take over control of the 26-year-old craft brewery’s assets, after the company failed to repay $4.8 million owed to creditors.

Carrigan and Craig, a married couple from Seattle, paid $970,000 for the company, according to Thurston County Superior Court records. The sale closed on Monday, and the news was shared on Fish Brewing’s Facebook page.

“We are very pleased to welcome our new owners, Josh Carrigan and Kate Craig!” the post read. “Onward and upward to bigger and better things!”

Fish Brewing produces three product lines: Fish Tale Ales, Leavenworth Biers, and Spire Mountain Cider. Carrigan and Craig told the Olympian they plan to increase production.

Fish Brewing’s volumes have declined steadily since 2014, when the craft brewery produced 15,858 barrels, according to not-for-profit trade group the Brewers Association (BA). Fish’s production declined double digits from 2015 to 2017, to 13,200 barrels in 2015 (-17%), 11,299 barrels in 2016 (-14%) and 8,824 barrels in 2017 (-22%). Fish’s production was flat in 2018, at 8,817 barrels.

Granite City Files for Chapter 11, Seeks Structured Sale

Bloomington, Minnesota-headquartered Granite City Food & Brewery announced Tuesday that it has filed for Chapter 11 bankruptcy, and the brewpub chain is seeking approval to enter auction and sale procedures in the U.S. Bankruptcy Court for the District of Minnesota.

Granite City owes its 20 largest creditors more than $4.2 million, according to court documents.

“The Granite City board of directors and management team have thoroughly assessed our strategic options and financial situation and unanimously agree that this structured sale process represents the best possible solution for the company,” board chairman and CEO Richard H. Lynch said in the release. “We believe pursuing this path will provide value to our creditors, enable one or more future restaurateurs to operate our locations and preserve hundreds of jobs.”

Granite City and KRG Granite Acquisition LLC have agreed to a sale of $7.5 million plus certain liabilities, according to a press release. The sale is subject to approval from the court and a subsequent auction process expected to end in February.

Granite City, which was founded in 1999, operates 25 locations, primarily located in the Midwest.

In 2018, Granite City ranked fifth in volume among national brewpub chains, despite sales declining 12%, to 13,493 barrels, across 32 locations, according to the BA.

At the close of trading Thursday, Granite City stock (GCFB) was valued at $0.10 on the OTC Market.

California’s Barley Forge Brewing Agrees to Sale to Green Cheek Beer Co.

The owners of Barley Forge Brewing agreed on Wednesday to sell their business to the owners of Green Cheek Beer Co., according to the Los Angeles Times.

Orange, California-based Green Cheek’s owners Brian Rauso and Evan Price offered $1.05 million for Costa Mesa, California-based Barley Forge, which filed for Chapter 11 bankruptcy in October. Rauso and Price’s acquisition comes after a December 11 auction, according to documents from Onyx Asset Advisors, who is managing the sale.

To qualify, bidders were required to submit offers of at least $750,000 in cash, with a $50,000 “good faith deposit,” according to Onyx’s auction notice.

Greg Nylen and Mary Ann Fericks opened Barley Forge in 2014 and began distributing beer in 2015. Last year, the microbrewery sold about 5,000 barrels, according to Onyx.

“There was significant price competition and it became very difficult to profitably wholesale craft beer for most but the highest-volume craft brewers,” the document read. “As such, the wholesale distribution side of Barley Forge has never been significantly profitable and, in fact, suffered substantial losses in 2018 and the first half of 2019.”

The 10,000 sq. ft. brewery includes a taproom with 18 taps, kitchen, and production and packaging space.

Rauso and Price told the Los Angeles Times they plan to use the Barley Forge facility to ramp up Green Cheek production and as an additional taproom. They will own the Barley Forge brand and recipes, but do not plan to brew beer under the Barley Forge name.

Long Island’s BrewSA Brewing Files Chapter 11

BrewSA Brewing Company filed for Chapter 11 bankruptcy last month in U.S. Bankruptcy Court in New York’s Eastern District Court.

The Long Island company owes more than $1 million to secured and unsecured creditors and has between $0 and $50,000 in assets, according to a November 22 court filing.

Speaking to Brewbound, BrewSA manager Thomas Limerick expressed confidence in the company’s plan to reorganize.

“There’s zero chance of us going bankrupt,” he said before declining further comment.

Secured creditors, who must be paid back in reorganization, are owed a total of $497,356.42 and include M & T Bank of Buffalo, New York, Prospero Equipment of Pleasantville, New York  and Knight Capital Group of Dover, Delaware.

BrewSA’s unsecured creditors — a mix of institutional lenders, private investors and the New York Department of Taxation and Finance — are owed a total of $556,848.26.

BrewSA opened its brewery and taproom in the spring of 2017 but had been brewing under contract in the Midwest for several years, according to the company’s website.

In 2018, BrewSA produced 250 barrels, according to the BA.