Brewery X wins auction bid to purchase Modern Times for $20 million

Discussion in 'US - West' started by antsmarching777, Jun 18, 2022.

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  1. Antwan83

    Antwan83 Initiate (19) Feb 24, 2020 California

    This makes a lot of sense being the pandemic didn’t take a financial toll on any of these companies. Bankruptcy > buyout am I right?
     
  2. Space_Cowboy85

    Space_Cowboy85 Initiate (67) Dec 24, 2018 Texas
    Trader

    It’s so weird to me. A person can work hard, cash out and enjoy retirement…

    Unless of course they own a company. Then they’re filthy and rotten.
     
    deanzaZZR, Lare453, pjeagles and 9 others like this.
  3. dcgunman

    dcgunman Meyvn (1,348) Jul 1, 2009 California
    Society Trader

    How much did former Ballast Point owner make out? He probably owns his own island somewhere in the South Pacific.
     
    vurt and DefenCorps like this.
  4. ChazMania

    ChazMania Aspirant (231) Jun 13, 2006 California

    Ballast owners made out double large- they also started Cutwater Sprits and sold that to AB in 2019. Those dudes likely do own islands in the south Pacific.
     
  5. beergrrrl2

    beergrrrl2 Initiate (90) Dec 2, 2008 California

    Your calculations are not correct: It's not just the ESOP that gets nothing - none of the previous owners (including Jacob) will get anything from the sale. $20 million isn't enough to cover MT's other debts before payments roll down to any of the investors.
     
    dcgunman likes this.
  6. ChicagoJ

    ChicagoJ Poo-Bah (1,850) Feb 2, 2015 Illinois
    Society

    Your post is "not correct". I never stated the ESOP owners different rights than the holders of the remaining stake held outside the ESOP.

    Jacob and the other shareholders did receive the proceeds on the sale of their approximate 30% of outstanding shares sold to the ESOP at the inception of the ESOP, which MT took on debt to finance this sale. I also stated shareholders are last in line behind debt and payables, and would receive little to nothing based on the total outstanding debt.
     
  7. backwash

    backwash Initiate (29) May 26, 2021

    YESSSSSSSSSSS.

    Perfect.

    I'll go a step further and say I'd prefer.
     
  8. backwash

    backwash Initiate (29) May 26, 2021

    So are these the people we are supposed to hate?

    [​IMG]
     
    Lare453, BeerBaron666, AlexM and 3 others like this.
  9. chrisjws

    chrisjws Champion (886) Dec 3, 2014 California

    They root for the Ducks, so yes. I hate them now. I was on the fence before.
     
    LocestLXCX, 310gts, nocturne1 and 6 others like this.
  10. Jesseix

    Jesseix Initiate (25) Mar 18, 2022 California

    I bought a single Brewery X beer at TJ’s today. If it’s bad, I hate them all and they’re clearly horrible people. If it’s good, I love them all and they should receive sainthood.
    Simple!
     
  11. ChicagoJ

    ChicagoJ Poo-Bah (1,850) Feb 2, 2015 Illinois
    Society

    No masks. No ukraine lapels or flags. No ribbons supporting the latest thing.

    Three strikes and you're out!!!
     
  12. Space_Cowboy85

    Space_Cowboy85 Initiate (67) Dec 24, 2018 Texas
    Trader

    They think for themselves. We must hate them! RAAAAAWR!
     
    Lare453, DJMorman, backwash and 2 others like this.
  13. BWeezy

    BWeezy Initiate (61) Aug 21, 2014 California

    You've gone too far now.
     
  14. Luu777

    Luu777 Initiate (118) Dec 26, 2010 California

    Who cares? Seriously. 4 better breweries within walking distance of BX and 5 within distance of MT Anaheim. Move on. Nothing to see here
     
    QuakeAttack likes this.
  15. beergrrrl2

    beergrrrl2 Initiate (90) Dec 2, 2008 California

    Not so: It's not just the ESOP that gets nothing - none of the previous owners (including Jacob) will get anything from the sale. $20 million isn't enough to cover MT's other debts before payments roll down to any of the investors.
     
  16. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,110) Mar 12, 2013 California
    Society Trader

    They already got the cash from the ESOP whenever they happened a couple years ago.
     
    ChicagoJ likes this.
  17. considerbeer

    considerbeer Initiate (31) Dec 15, 2016 California

    I think Modern Times’ social media copy could use some work given the circumstances.

    [​IMG]

    STAR CLOUD. There is simply no way to adequately prepare your taste receptors for the jaw-dropping deluge of flavor contained herein. Packed with financially irresponsible amounts of incredibly choice Citra, Cashmere, and Motueka hops, this hazy IPA is a miraculously tasty juice-bomb replete with notes of tangerine, lime, citrus, and tropical magic. It’s a seriously excellent combo that you can have shipped to your door for 15% less than normal-through Sunday!”

    Emphasis added.
     
    #177 considerbeer, Jun 25, 2022
    Last edited: Jun 25, 2022
  18. Brent212

    Brent212 Initiate (163) Jan 13, 2014 California
    Trader

    my main problem with that beer is that when I first saw it at fwl a few weeks ago, I asked what the date was on the cans and it was already more than a month old.
     
    ChicagoJ likes this.
  19. AlCaponeJunior

    AlCaponeJunior Poo-Bah (2,662) May 21, 2010 Texas
    Society

    Oh holy flying spaghetti monster, can't anyone just be middle of the road reasonable and normal anymore? Or am I committing a micro aggression by suggesting such heresy?

    Don't answer that. :rolling_eyes:

    Fwiw, brewery x doesn't ring a bell, but it's possible I've tried something from them and can't remember bc either they just weren't memorable or I smoke too much pot.

    MT does manage to get some beers to SATX, only IPAs that I can recall. But I have bought them on several occasions and liked them.

    And for the record, f*** selzers. You can quote me on that.
     
  20. AyeDogg

    AyeDogg Aspirant (205) Oct 29, 2015 California
    Trader

    OK.
     
    J-loco and Reidrover like this.
  21. Reidrover

    Reidrover Poo-Bah (4,697) Jan 14, 2003 Oregon
    Society

    They have a Freedom IPA. What a f--cking joke after this week.
     
  22. DefenCorps

    DefenCorps Poo-Bah (6,172) Jan 18, 2007 Oregon
    Society Trader

    Only 2 of the following 3 are conscious choices that reflect your values:maga, vegan and gender indentity.
     
    sharpski and Reidrover like this.
  23. annakarina

    annakarina Aspirant (221) Jul 29, 2016 California

    The last page is supposed to be in support of Brewery X and it is not working at all. How often do y'all use the term "snowflake"?

    I love when breweries don't consider the health of their patrons during the beginning of a worldwide pandemic, bro!
     
  24. Reidrover

    Reidrover Poo-Bah (4,697) Jan 14, 2003 Oregon
    Society

    I posted on their Facebook page about FREEDOM..haha they took it down MAGA rats
     
    distantmantra and fegelFatso like this.
  25. jesskidden

    jesskidden Poo-Bah (2,515) Aug 10, 2005 New Jersey
    Society Trader

    "I thought their Superspreader DDH* Double IPA was great! We got pitcher after pitcher of it - to share the beer (and other things) with friends and strangers."
    * Hops are antiseptic, of course. What could possibly go wrong?
     
  26. Todd

    Todd Founder (6,682) Aug 23, 1996 California
    Staff Moderator Fest Crew Society Trader

    Court Approves Sale of Modern Times to Brewery X; Receiver Seeks $400K to Fund Operations until Sale Close
    via Brewbound (paywall): https://www.brewbound.com/news/cour...eeks-400k-to-fund-operations-until-sale-close
     
  27. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,110) Mar 12, 2013 California
    Society Trader

    HouseofWortship and ChicagoJ like this.
  28. BreakingMyBalls

    BreakingMyBalls Initiate (125) Apr 27, 2017 California
    Trader

    Zion is going to lend 400k to keep them afloat until the deal closes with the 400k being repaid back to Zion after the 20mil has been paid to the receiver.
     
  29. wolf13

    wolf13 Initiate (147) Dec 11, 2014 California
    Trader

    The money would be coming from Zions Bank, which is the creditor that filed for the receivership in the first place. Most likely they will get the $400K as the receiver and Zions both agree to it, the judge just has to approve it at the hearing at 1:30pm today. The money will cover 07/01/22 payroll and some operating expenses for a couple of weeks. The only issues that might halt the sale are if Brewery X's funding falls through, or if MTD files an appeal of the order confirming the sale. If its the former, Maui would have the chance to buy MT at their $14 million-ish bid, if it's the latter, then my guess is Zions would continue to float MT until the sale is confirmed and just take a larger portion of the sale price in exchange. The $20 million is about $3 million in excess of all of MT's debt to Zions and MT's debt to the second large creditor (forgot the name), so there's little risk. The $14 million-ish covers all of the debt to Zions and most of the debt to the second creditor.
     
    unlikelyspiderperson likes this.
  30. unlikelyspiderperson

    unlikelyspiderperson Poo-Bah (2,110) Mar 12, 2013 California
    Society Trader

    One other question, will the eventual purchaser take on any of the debt not covered in the sales price or are they purchasing the brand free and clear?
     
  31. ChicagoJ

    ChicagoJ Poo-Bah (1,850) Feb 2, 2015 Illinois
    Society

    Updating my OG Post as I found a different source that stated Brewery X is not responsible for MT's debt through the close.

    https://www.sandiegouniontribune.co...-17/modern-times-brewery-on-the-auction-block

     
    #191 ChicagoJ, Jun 27, 2022
    Last edited: Jun 27, 2022
  32. moodenba

    moodenba Defender (603) Feb 2, 2015 New York

    The purchaser gets the business cleared of debt according to the bankrupcy. Their payment of the 20M is the entire amount available to pay debt. The court will determine who gets paid, depending on how well the debt is secured. Expect service providers and share holders to get little or nothing. It's much nicer when a business shuts down or enters bankrupcy earlier, when it still has an operating cash cushion, so people can be paid. MT was apparently scraping for $$ for a while, considering their ill-fated ESOP.
     
    unlikelyspiderperson likes this.
  33. SoCalBeerIdiot

    SoCalBeerIdiot Crusader (708) Mar 10, 2013 California
    Trader

    I bet it started before that. I bet the creation of Theory was a necessary money-grab at the time they launched it. It didn't provide enough added revenue, so they went with the ESOP.

    I have nothing to base this on other than my (ever-expanding) gut, but that makes more sense than any other reason I can think of for its creation. The excuse of "rewarding our most loyal members" always seemed like bullshit to me. If they wanted to let power buyers buy above the limits, they could have just done that without creating a whole new level of membership as an excuse.
     
  34. Xul

    Xul Champion (856) May 18, 2008 California
    Trader

    The ESOP was launched in July 2017. The first round of Theory invites went out on October 7th, 2017 for the 2018 membership year. So no, the ESOP was not unveiled in response to whether Theory did or did not generate enough excess revenue.

    It also doesn't make sense from the standpoint that Modern Times had to finance the buyout of existing external investors to get those shares for the ESOP, meaning it was not a revenue-positive transaction for the company.

    Now if you want to talk about the WeFunder campaign in April 2019, that's a very different story.
     
  35. pixiesfanyo

    pixiesfanyo Initiate (103) Oct 25, 2010 California

    That video comes off pretty bad in retrospect. Sucks what happened to this place.
     
    ChicagoJ likes this.
  36. moodenba

    moodenba Defender (603) Feb 2, 2015 New York

    The transaction might have been neutral for the company, But money moved from ESOP investors to prior investors. Maybe the insiders saw the handwriting on the wall and wanted to get something out of the investment before the **** hit the fan. (mixed metaphors!)
     
    FonyBones and ChicagoJ like this.
  37. DefenCorps

    DefenCorps Poo-Bah (6,172) Jan 18, 2007 Oregon
    Society Trader

    Maybe I'm naive, but wouldn't this meet the criminal definition of fraud?
     
  38. moodenba

    moodenba Defender (603) Feb 2, 2015 New York

    caveat emptor: BITCOIN??????
    Realistically, you'd have to review the documents associated with the ESOP.
     
    DefenCorps likes this.
  39. chrisjws

    chrisjws Champion (886) Dec 3, 2014 California

    Leisure coin ($LEIC) should have been a thing in 2021
     
  40. fegelFatso

    fegelFatso Aspirant (222) Jun 23, 2013 California

    #cryptowinter
     
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