A surprising brewery now files for Chapter 11 bankruptcy protection, though the company reports that it is not facing financial distress.
The popular craft brewery Griffin Claw Brewing Co. filed for Chapter 11 bankruptcy protection on July 26.
Griffin Claw Brewing said that it is not facing any financial distress, and is not seeking a liquidation or restructuring of its financial situation.
A reorganization, however, is likely in the Michigan company’s future as the owners of Griffin Claw Brewing filed their petition to avoid litigation between the ownership’s partners, the Detroit News reported.
“We’re a profitable company,” Griffin Claw co-owner Scott LePage said.
“We’ve always been profitable, it’s just that we got put into this position and ownership can’t agree.”
LePage said that the Chapter 11 filing will not affect Griffin Claw’s business operations or employees at its Birmingham and Rochester Hills, Mich., locations.
The brewery, restaurants and taprooms will operate as usual, he said.
“Nothing’s changing. We’re open, the patios are busy and we’re ready for a good Friday night. It’s an ownership disagreement,” LePage said.
Employees and vendors will be paid, he said.
Griffin Claw Brewing Company was founded in 2011 by Scott LePage’s father, Norman LePage, and his business partner Ray Nicholson.
Following Nicholson’s passing in 2019, a dispute arose between the LePage family and Nicholson’s heirs.
The root of the issue seems to be an unresolvable disagreement over the distribution of proceeds from the sale of the Clubhouse BFD in Rochester Hills to Griffin Claw Brewing.
The Rochester business has since been rebranded as Griffin Claw Brewing.
Griffin Claw Brewing Company currently offers 18 different beer varieties, including one of its early award-winning products, Norm’s Raggedy IPA.
In addition to its beer selection, the company also produces its own hard cider and distilled spirits, such as vodka, bourbon, whiskey, gin, and rum.
It’s worth noting that the LePage family also owns the Lumen Detroit restaurant in Beacon Park, which is not included in the bankruptcy filing related to the Griffin Claw Brewing business.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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