Real Estate Associate, James Yoakum was quoted in the media on the impact of Iron Hill Brewery’s bankruptcy. The brewery and restaurant recently announced that it has filed for Chapter 7 bankruptcy, opening a possible liquidation of the 19-restaurant chain. This announcement comes just weeks after an abrupt announcement of the closure of three locations, including their flagship, and the layoff of the locations’ employees. Two weeks later, the brewery and restaurant announced the closure of all locations and the termination of all employees. Now, the company faces a potential class action lawsuit for possibly violating the WARN Act by not giving employees 60 days’ notice before mass layoffs. In addition, it remains unknown if another brewery will take over some of the locations. According to James, that seems unlikely given the current trends in the craft brewing space.
“When I think of other regional breweries ― established craft breweries that could expand – they are all struggling right now,” he said. “And for the brewers I know and talk to, it’s more of a time to buckle down and mind your p’s and q’s kind of moment rather than taking big swings at expansion,” said James in the Delaware News Journal Article.
James also provided comments in the Philadelphia Inquirer on how Iron Hill may chose to distribute their beer following the closings.
“I would hope they don’t just dump it. It’s not Prohibition,” said James. “Where it shows up would be the question.”
He also noted that its possible that the beer that has already been canned in the Exton facility may be easier to get on the market. However, each state has its own third-party distribution rules, and any sale of remaining cans now has to be approved by a bankruptcy judge.
