El Cajon Brewing Company, Chapter 11

Discussion in 'Pacific' started by evilc, Oct 22, 2012.

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  1. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    Man...this means I need to get back over there before it goes belly up.

    Now if only we'd be so lucky for a similar fate for Poorhouse. He's killed a company once, lets hope he can do it again.
     
  2. evilc

    evilc Initiate (0) Jan 27, 2012 California

    ....but those girls will all lose their jobs - their dreams - their passionate dreams and love of beer....
     
  3. nanobrew

    nanobrew Initiate (0) Dec 31, 2008 California


    As the end is drawing near is there any idea as to what happened to all of the money? He wasn't paying his lease or the loan (nor apparently for brewing supplies). Is this a case of terrible management, lack of business/customers, or did that money just disappear into someone's personal account.
     
  4. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    There's always the Tilted Kilt.
     
  5. evilc

    evilc Initiate (0) Jan 27, 2012 California

    Are they as passionate about beer? PASSION BRO
     
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  6. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    If the City is repossessing the brewing equipment, some of the money that they loaned to ECBC was used to purchase it outright. That was probably a few hundred thousand. I haven't been there but I imagine that the tenant improvements would cost some significant money also. The original $600,000 is probably easy to trace for the most part.
     
  7. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    Well It certainly didn't go in my account.....

    By the way, this thread is very well known in the brewing community all over the US thanks to Beer Advocate, and everyone is on my side! Thanks so much to all the brewers who support me in L.A., San Diego, Phoenix, Montana, New Mexico, Illinois, Mexico, Sweden........etc etc
    and thanks to Beer Advocate.
    For a laugh:
    DB has listed himself in the BRD (brewers resource directory) as Brew Master!!!
    ROTFFLMAO!! He knows absolutely nothing about brewing and yet he is a Master Brewer?
    what a frikikin shame to the entire brewing community!

    Cheers
    D
     
  8. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    How much is the brew system worth? What size?
     
  9. nanobrew

    nanobrew Initiate (0) Dec 31, 2008 California

    I bet with all of the new breweries looking to open up they will not have any trouble selling the stuff. Hopefully it can find a good home in SD
     
  10. HopHead84

    HopHead84 Grand Pooh-Bah (3,144) Nov 29, 2006 California
    Pooh-Bah Society Trader

    The support for you shown by the community has been nothing short of inspiring. I mean, people all over the world made their voices heard: Craftattle, and, uh, Craftattle. I'm sure there were others I'm forgetting.
     
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  11. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    Agree. I just wanted to see how much the City might recoup. In that recent article, the El Cajon City Councilman seemed to think that the equipment was worth more than the loan ($600,000?).
     
  12. carnevoodoo

    carnevoodoo Initiate (0) Oct 10, 2007 California

    Nah. It isn't worth that much. Probably mid-200's. It is a good system without a ton of wear on it. but it isn't THAT expensive. It sucks, because I am sure they still owe on the equipment itself. Premier Stainless has a pretty good reputation for financing locals.
     
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  13. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    Craftattle is real. An old friend of mine. As I said before, I travel all over the US brewing beer for Premier Stainless. I meet the brewers face to face and many of them have read this thread. Do you think I am full of shit HopHead84?
     
  14. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    Man, you have to fuck up pretty bad to be run out of El Cajon...be happy DoughIn that you won't be part of the bankruptcy.
     
  15. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    If the City is repossessing it (not Premier), it was probably paid-in-full. Otherwise, Premier would be involved in the BK proceedings to make sure that they got back their collateral.
     
  16. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    Does Premier finance? I would think a brewery would take a loan from the bank and the brewhouse would be collateral for said loan.
     
  17. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    According to carnevoodoo, "Premier Stainless has a pretty good reputation for financing locals" (Post #312).

    In this case, the City is repossessing the equipment (and no one seems to be protesting it). Therefore, their loan must be secured by the equipment.
     
  18. MacNCheese

    MacNCheese Initiate (0) Dec 10, 2011 California

    Huh, I was paying attention to DoughIn and totally missed Voodoo's posting. I R Dumbz.
     
  19. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    In Chapter 11 bankruptcy cases, a business debtor is supposed to file monthly operating reports and the most recent one on file for ECBC is form December 2012. The report shows $59,796.08 in gross income and $16,735.60 for costs of goods sold, mainly food and beer. The gross profit was $43,060.48. They listed the total expenses as $50,145.64 and that figure includes $7,251.22 allegedly paid for rent and payroll of $30,055.79. So they basically lost $7,085.16 in December. The expenses are itemized in detail and I'm no expert ant running a restaurant, so there isn't anything that jumps out and says "fraud". They just seem like normal business expenses to me. I have a copy of the December report if anybody wants to take a look at it and give us an informed opinion on it.

    In court filings, they had mentioned plans to start selling to other their stuff to other breweries. Whether that is enough to close the gap and start turning a profit is a question that probably won't be answered.
     
  20. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    The City of El Cajon filed a copy of the construction contract with the bankruptcy court. The original contract was $345,000 and the contractor was...wait for it...Meadows Construction. There were probably change orders that increased the cost of construction and probably a lot more unknowns like the architect's fees and building permit fees.
     
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