San Diego's own Green Flash Brewery has been experiencing financial troubles for some time and has sold to a group of investors after a foreclosure by their principal lender, Comerica Bank.
The sale closed on Friday (3/30) and a new ownership group called WC IPA LLC is taking over and already starting to make several top management changes.
Green Flash had ambitious plans to become a national force in the craft beer industry and follow in the steps of breweries like Stone, but perhaps their growth happened to quickly as they were unable to make payments on a $20 million dollar loan.
“After a general slowdown in the craft beer industry, coupled with intense competition and a slowdown of our business, we could not service the debt that we took on to build the Virginia Beach brewery, and in early 2018, the Company defaulted on its loans with Comerica Bank,” CEO Mike Hinkley wrote in a note to Green Flash shareholders. “While we took substantial efforts to recapitalize the Company over the past several months, both before and after the bank default, we were ultimately unable to close a transaction.”
Currently the Green Flash and Alpine Breweries will continue to operate under new management but the companies themselves will be dissolved and the Virginia Beach location that was just acquired 16 months ago will be sold.
The Lincoln Nebraska Green Flash Brewhouse and Eatery which was scheduled to open this month, will still brew specialty beers and remain open at this time.
Read more at the SanDiegoUnionTribune.com