It’s been a tough couple of years for the once high-flying San Diego brewery. But things may get much worse.
Here’s the deal…
In a recent website post Modern Times Beer let it be known that its lender (in this case a bank) has initiated legal actions that may result in a court-ordered receivership sale of the business.
On February 14 Modern Times Beer announced that it would be closing a number of its locations citing the pandemic and the “global declines in the craft beer industry,” and they’ve been struggling since then to find ways to revitalizing there four remaining tasting rooms and restaurants and doing whatever they can to stay afloat.
But on April 6 Modern Times took to its blog to update fans on its future. And because it was so resonant we’ve republished that post in its entirety…
AN UPDATE ON THE IMMEDIATE FUTURE OF MODERN TIMES
If you’ve been following us recently, you may know much like many others in the beer and hospitality industry, Modern Times has been through a tough two years—tough enough that we’ve recently had to make major cutbacks to both our personnel and our geographic footprint.
Let’s focus on the most important thing first. Modern Times remains committed to our drinkers, our brews, and delivering great times when you visit us. Through the challenges, our coworkers, distributors, buyers, drinkers, and patrons have been and continue to be vital to us.
The intense and rigorous work of restructuring the business coincides with other massive challenges: revitalizing our remaining four tasting rooms and restaurants; struggling with rising gas prices; a constrained trucking and logistics system; and supply chain issues with aluminum cans. As these issues have intensified, so have our concerns about financials, cash flow, and profit.
Our senior secured lender (AKA bank) tightly monitors the company’s finances and, though we have been working diligently with their officers over the past weeks, they have commenced litigation which we believe will result in a court-ordered receivership sale of Modern Times.
So, what is a receivership? It’s complicated, but it boils down to this: our bank nominates someone to oversee the sale of the Modern Times business. Once approved by the court, this nominated person, or “receiver,” will be the final word on our financial decisions for the immediate future, and in charge of the sale of the brand to interested parties.
While this isn’t a comfortable position for any company to be in, a receivership should hopefully allow Modern Times to be sold as a “going concern,” as opposed to “turning off the lights” and liquidating the equipment and inventory. A going concern sale would raise the odds of the new buyer keeping our talented staff, amazing products, and renowned customer experience intact. Obviously, this is not an ideal situation, but across a field of exceedingly difficult choices, it’s the best one available and is far preferable to ceasing operations entirely. We expect this process to move swiftly. Financial situation aside, we have an amazing brand.
On a more personal note—those of us who have experienced the last two years with Modern Times are absolutely certain of one thing: none of us would still be here if we didn’t care deeply about this brand and believe in its future.
This has been an incredibly tough decision in a series of tough decisions; one more difficult message to write in a long line of difficult messages. But we are not done, and we are not giving up. Far from it. We’re still making amazing beer. We’re still roasting amazing coffee. We’re still pressing forward, and we still believe that there are far better days ahead for both our staff and our fans.
We thank all of you for your continued support and patronage during these difficult times. It has meant the world to us, and we’re still working hard to make sure it’s rewarded with many more beers, coffees, and good times in the future.
More to come.
Modern Times in happier times…