E-Malt.com News article: USA, NY: Empire Brewing Co. brewpub closed on defaulting on rent

The Empire Brewing Co. brewpub in Syracuse’s Armory Square closed abruptly on October 17, newyorkupstate.com reported.

A padlock was placed on the entry and both its web site and Facebook pages have removed hours of operation listings.

The brewpub was locked out because it defaulted on its rent, according to Jeffrey Appel, managing partner for Armory Boys LLC, which owns the building at 120 Walton St.

“Empire has not paid a dollar in rent for 3 months and was constantly behind in payments over the past year despite business as usual and substantial infrastructure investments made by the building owners to improve the establishment,” Appel wrote in an email to syracuse.com. “The default is immediate and irreversible without any rent payments made.”

Empire Brewing owner David Katleski said in a text message today that he is trying to “work out a resolution” with the landlords. He had previously told syracuse.com that the landlords, Armory Boys LLC, were attempting to raise the rent in negotiations on a new lease. Appel denied that: He said the lease terms handn’t changed.

Empire originally opened in the Bentley Settle Building at 120 Walton St in 1994. It is one of Central New York’s oldest craft breweries, and has been an anchor food, dining and music spot in Armory Square for most of the past 25 years. It closed in 2004 after previous financial troubles led to bankruptcy, then reopened in 2007.

The situation at the downtown brewpub is separate from the ongoing bankruptcy at its sister operation, Empire Farm Brewery in Cazenovia. Katleski owns both breweries, but they operate as separate companies.

The Cazenovia brewery declared bankruptcy in August but remains open as it attempts to reorganize. A pre-arranged sale, to a Wisconsin-based dairy cooperative, is scheduled to take place next week, though other bidders have until the end of this week to try to top that offer.

Burnett Dairy Cooperative of Grantsburg, Wis. has offered $3.25 million for the Cazenovia brewery and taproom, which opened in 2016 on Route 13 south of the village. Katleski has indicated that offer would allow the brewery to remain in business going forward. Burnett owns farmland across Route 13 from the Empire brewery.

The Empire Farm Brewery owes more than $10 million to its creditors. The $6 million brewery/taproom is one of the largest craft brewers in the state. Its problems include a yeast infection that caused problems with some of its beers later in 2016, and increased competition among mid-sized brewers fighting for space on store shelves and bar taps.

The downtown brewpub has a much smaller brewhouse. Most of the beer made there is sold in the adjoining bar/restaurant. The Cazenovia brewery makes beer that is packaged and sold across New York state, several other states and as far away as China.


20 October, 2019