CANarchy Terminates Employment of Deep Ellum Founder John Reardon

A month after Deep Ellum founder John Reardon filed a lawsuit against the CANarchy Holding Corporation — and private equity firm Fireman Capital Partners — alleging that the craft brewery rollup had failed to make several payments related to the acquisition of the Dallas craft brewery, the organization has terminated Reardon’s employment.

In a social media post Thursday, Reardon shared a letter from CANarchy CEO Anthony Short informing him of his termination, effective September 7.

In the letter, Short wrote that Reardon would be on “a non-working notice” from Thursday, August 27, through September 7. Short noted that Reardon would remain an employee through the termination date and would be subject to the company’s policies and procedures. He asked Reardon to return all company property in his possession by September 7 and said Reardon will receive final compensation.

“Please further note that any governing post-employment restrictions as provided in the employment agreement shall remain in full force and effect subsequent to the termination date,” Short wrote. “We wish you the best of luck in your future endeavors.”

Reached for comment, CANarchy president Matt Fraser declined to comment on personnel matters.

“As we mentioned before, we are working with the shareholder to address their concerns and resolve the issue,” he wrote.

Reardon’s attorney did not return a request for comment as of press time.

In a Twitter thread Thursday, Dallas-Fort Worth attorney Sean Buckley pointed out that in the Dallas City Council’s consent agenda on Wednesday included an application from Reardon-owned 2809 Canton LLC for a special use permit case to operate a microbrewery, distillery or winery” in an vacant 10,326 sq. ft. structure at 2809 Canton Street in Deep Ellum, next to the Deep Ellum Distillery, which Reardon also owns.

In July, Reardon told Brewbound that he negotiated a carve out with CANarchy to produce a small amount of beer to sell to wholesalers within his non-compete, which expires in about 2.5 years. His plan is to produce beer — including an IPA and a blonde ale — under the “Leadbelly” brand, as part of an agreement with the estate of musician Huddie “Leadbelly” Ledbetter.

In mid-July, Reardon filed a civil lawsuit in the Court of Chancery in Delaware against CANarchy Holdco Corp., DEBC Holdco Corp., CANarchy Holding Co. LLC, Oskar Blues Brewery Holding Co. LLC, CANarchy Craft Brewery Collective LLC, Deep Ellum Brewing Company LLC, and Fireman Capitals Partners LLC.

According to the lawsuit, CANarchy failed to pay Reardon, who is listed as the sellers’ representative, on numerous occasions, including a scheduled earn-out payment based on the future beer sales regarding the 2018 acquisition of the Dallas-Fort Worth-based craft brewery.

CANarchy has not yet filed a response to the lawsuit.

Read more about the lawsuit here.