El Cajon Brewing Company, Chapter 11

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

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  1. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    Interesting reading. I am not worried about this law suit. My name being on that list only goes to show that Douche Bag hasn't held up his part of the deal, but I have my lawyer taking care of it. He hasn't held up anyone's part of the deal obviously.
    I do know however, that Douche Bag was inquiring about the old police station and possibly other places to "move" the brewing equipment/Business. Sounds like he is totally delusional...
     
  2. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    I had heard about their efforts to find a new location, but the old police station seems like it would be an odd move and is news to me. On the other hand, I never had understood why that Long John Silvers on Fletcher Parkway is able to stay in business.

    Are you an actual signer on the loan documents? I haven't seen anything in any of the bankruptcy court filings that would indicate that you personally liable for the money borrowed from the development district.
     
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  3. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    As of today ECBC is closed. Douche Bag finally threw in the towel. Leaving the place to the landlord. Who ever started the rumors that the Landlord and I have been cooperating is a total fantasy made up by DB. I wonder what other fantasy stories he has devised?
    So he just walked out of the place leaving food and beer and everything is what I hear......
     
  4. pinkgrenade

    pinkgrenade Initiate (0) Aug 19, 2011 California

    april fools!
     
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  5. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    I drive down Magnolia almost ever night and my wife and I have the same conversation on the way home: "Do you think they are still open?" I'll I will find out around 5:30 or so tonight to see if this is an April Fool's joke or not.

    As for the rumors that you were cooperating with the landlord, that story is easy to trace. That's part of a declaration filed in the bankruptcy court.
     
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  6. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    Carl. I would not joke about this subject. As far as I know, he bailed. Probably on his way to a Kingdom hall in Mexico with a bag of cash.
     
  7. BigGene

    BigGene Initiate (0) Oct 30, 2010 Florida

    FYI just tried calling and the phone just rang and rang. From the website they should be open. (Yes I am at work and had nothing better to do)
     
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  8. besaunders

    besaunders Initiate (0) Nov 8, 2007 California

    A better April Fools joke would you be starting a Stone Cajon Gardens rumor.
     
  9. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    I called too...same result. I'll do a drive by tonight after work and report back.

    There's a place in Santee opening up this month that I wanted to try: http://www.bnsbrewinganddistilling.com/

    Dunno if they will be any good, but I'll give them a shot.
     
  10. evilc

    evilc Initiate (0) Jan 27, 2012 California

    They never answered the phone when they were open. Place has been run like shit since day one.
     
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  11. besaunders

    besaunders Initiate (0) Nov 8, 2007 California

    Coronado Brewing - El Cajon?
     
  12. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    The sign on the door says "Due to onsite construction We are closed for today". I saw no evidence of construction and other businesses in the building such as Starbucks and Quiznos were open. Everything appeared to be in like all the tables and chairs.

    I walked around to the back entrance where the brewing equipment is located. The door was open and I saw a guy that i didn't recognize, so i asked him if the place was closed permanently. He said something like "I don't know".
     
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  13. Eriktheipaman

    Eriktheipaman Initiate (0) Sep 4, 2010 California

    From their Facebook just now!


    "El Cajon Brewing Company
    As of Monday April the 1st the restaurant and brewery is under new ownership. The restaurant will be temporarily closed. It was a an unexpected change in ownership, but over the weekend we hammered out a deal the was very generous for all.

    We do not know how long it will take for the new owners to reopen the business but we are confident that it will be soon. We wish them the very best of luck and we hope they are highly successful."
     
  14. DoughIn

    DoughIn Initiate (0) Sep 27, 2009 California

    Awesome News. I hope DB has a great future ahead of him. Now hopefully something good will come out of the new ownership, whoever it may be good luck!
     
  15. Xul

    Xul Pooh-Bah (2,115) May 18, 2008 California
    Pooh-Bah Society Trader

    Wouldn't a sale of the company require approval of the court, which since the corporation isn't in good standing, they can't even legally do filings?
     
  16. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    Of course. The court is in charge of everything. The announcement should say, "We received an offer and now await the bankruptcy judge to make a ruling".

    That would be great if you could just declare bankruptcy, walk away from your debt and sell off the assets with no oversight.
     
  17. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    There are so many variables here and so many pieces to the puzzle that need to be addressed before the sale can go through. Maybe they have a plan of action that could work, but here are some things to consider:
    • The landlord's eviction lawsuit is still set for trial this week;
    • The City of El Cajon is still suing for repossession and nonpayment;
    • The corporate status of the corporation is still suspended and they technically cannot enter into contracts nor filing legal documents with any court; and
    • There are no filings with the bankruptcy court regarding this sale. If they don't move to dismiss the bankruptcy, they'll either need to file a plan of reorganization get the sale approved by the court.
    If you read up on what has been happening with Hostess, they might be trying the same thing here. The Hostess bankruptcy is a Chapter 11 liquidation rather than a Chapter, but it is too early to tell exactly what is happening until they file something with the court.
     
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  18. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    The City of El Cajon issued a press release today: http://www.ci.el-cajon.ca.us/misc/Forms/PressReleases/13 04 02 El Cajon Brewery .pdf

    The spin doctors are hard at work on this one. The debt to the City is $601,000 and the debt to the landlord has to be at least $150,000 or so. If the brewing equipment is worth less than $300,000 as some have suggested here and the business hasn't been profitable, I can't imagine that anybody would be willing to pay nearly what the City might be expecting unless they truly had some great business plan to really ramp marketing and production.
     
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  19. sandiego67

    sandiego67 Initiate (0) Feb 25, 2008 California

    A new brewer wouldn't pay anything for the business because it has negative equity. If the new brewer is smart, they might assume the existing loan (non-recourse without personal guarantees) after it was restructured and a good portion was written off. They could also work out a percentage lease with the landlord with a very low minimum rent.

    The bankruptcy probably wiped out the debt of the old rent to the landlord. That wouldn't be an obligation for a new brewer.
     
  20. CarlStarrett

    CarlStarrett Initiate (0) Nov 24, 2012 California

    The bankruptcy hasn't wiped out anything at this point and I can't imagine why anybody would by the corporation because of all the debt. It would make more sends to by the assets at a substantial discount.
     
    domtronzero likes this.
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