What seems like just weeks ago, Green Flash Brewing could be found in U.S. states. Then came the news that the brewery was pulling out of nearly 2/3rds of their distribution territory.
In March, Green Flash announced the closure of their $20 million dollar Virginia Beach location that opened in late 2016, terminating over 40 employees. At the time, the brewery released a memo stating they had new investors ready to help maintain the Green Flash presence.
Today, Green Flash President and CEO Mike Hinkley sent out a memo to their shareholders that the company’s senior lender Comerica Bank has foreclosed on its loans and sold the assets through a foreclosure sale which closed on March 30, 2018.
The company no longer owns Green Flash or Alpine Beer brands. Per the memo:
Dear GFBC, Inc. Shareholders,
On behalf of myself and the Board of Directors of GFBC, Inc. (the “Company”), I am truly sorry to report that the Company’s senior lender, Comerica Bank, has foreclosed on its loans and sold the assets of the Company (other than the Virginia Beach brewery) to WC IPA LLC through a foreclosure sale which closed on March 30, 2018. As such, the Company no longer owns the Green Flash and Alpine businesses. Comerica Bank is currently conducting a separate process to sell the Virginia Beach brewery.
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. 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.
While the Green Flash and Alpine brands will continue they will do so under new ownership, and GFBC, Inc. and Alpine Beer Company will be wound down and dissolved. I sincerely thank you for your support over the years.
Mike Hinkley CEO GFBC, Inc.
Comerica is currently in the process of selling the east coast facility, there has been no mention of the fate of the brewery’s third location, set to open up this year in Nebraska.
ED NOTE: Per the memo, Green Flash has been sold to “WC IPA LLC”, registered on Top Gun Street in San Diego. Screenshot below.
This story is developing…