Arcadia Ales Kalamazoo Facing Foreclosure

Agreed! I originally got in to craft beer because of Arcadia. They used to let you “volunteer” to help bottle on Fridays and would feed you pizzas and let you drink the shorts off the line.

 

Not bad brewers...just bad businessmen. There are a lot of great brewers out there but translating great beer to great profits is an entirely different story.

 

I find this story really confusing. That mortgage must not have been favorable to Arcadia. The original amount was $3.2 million in 2013. That means they paid off $1.8 million is approximately 6 years (give or take some months). That isn't chump change. It's clear the business was producing cash.

It just seems like something could have been done to avoid the predicament that exist now. Banks don't issue those kind of loans hoping that they inevitably take over the business. They want their loan back (with the appropriate interest) more than anything else. Weird.

 

It was an over-generalization on my part. Failing breweries might have been a better way to state it.

 

Your amount for the original mortgage makes more realistic sense, but I'll swear that I remember reading that place cost $30 million for land and to build and equip. If that is the correct amount, then they pissed away about $27 million in equity by selling the place to the bank for $1! I just don't get that decision if my number is correct for the original cost. I'm traveling right now, but I'll try to do some research on that amount when I get home.

 

They were also behind in taxes by a few hundred thousand. The speculation in some other groups about selling for $1 (rather than getting the property officially foreclosed on) is that there could ultimately be a tiny difference in the hit to their credit. Or at least the perception that it was their decision vs having the property taken away from them. Timing-wise, all these mortgage and tax payment issues were going on at about the same time they were opening the new Lansing location. I wonder if they were diverting all of the cash into the new place and "neglecting" the Kzo property. Of course, that doesn't make any business sense to jeopardize the Kzo property when it possesses all of their production capacity.

 

My wife and I went to the Lansing site once and that was it. A flight cost me $20. Five 4 oz pours of nothing over 7%. Wife had an infected Salted Caramel Porter. We both had bbq plates that did not measure up to the Kalamazoo site. My bill was more than $60 with tip. We got bad value for our money.

 

If you are a collector of newly, non-existant beer bottles, labels, crwon caps, or you like their beers that are still on the store shelves and beers, now's the time to get it. It was announced today that Arcadia will cease brewing immediately and presumably the Arcadia name will become defunct. The brewery is already closed for reconstruction/remodeling to become a full service restaurant, and the new owners are looking for someone to operate the brewing equipment for contract brewing. https://www.mlive.com/news/kalamazo...r-will-be-replaced-by-new-bar-restaurant.html

 

Yes, they are done. Kalamazoo has. Few casualties now. Gonzo's to Saugatuk, Boatyard closed, Rupert's going to a dispensary, now Arcadia.

I can still enjoy the Eccentric Cafe.

 

In nearby Lansing, a place called "Arcadia Smokehouse" opened not too long ago, serving Arcadia Ales brews and brewing beer in house. It felt like it took forever to open, so I'd hate to see its future jeopardized now. The ownership structure of the Smokehouse sounded really complicated to me, so I don't know. My understanding was that it was a partnership between Arcadia Ales and a company called Urban Feast. Maybe Urban Feast can change the place's name and continue on, or find a way to keep using the Arcadia name?

At any rate, I enjoyed the Arcadia Smokehouse. It's a solid brewpub.

 

Some additional detail on the closure and the relationship between Urban Feast and Arcadia. Doesn't go too far beyond the MLive article, but for those seeking more info, here you are: https://www.brewbound.com/news/arcadia-brewing-ceases-operations-at-kalamazoo-production-facility