E-Malt.com News article: USA, MN: New Brighton-based brewpub Barley John’s Inc. files for Chapter 11 bankruptcy protection

New Brighton-based brewpub Barley John’s Inc. has filed for Chapter 11 bankruptcy protection while it works to repay its debts, the Minneapolis / St. Paul Business Journal reported on January 29.

The company listed between $100,001 and $500,000 in assets in its Jan. 20 filing in U.S. Bankruptcy Court for the District of Minnesota. Its estimated liabilities are in the same range.

Secured creditors include First National Community Bank of New Richmond, Wis., which holds the mortgage on the brewpub’s 781 Old Highway 8 SW property in New Brighton, the Minnesota Department of Revenue and the U.S. Small Business Association.

The largest unsecured creditor is Capital One, which is owed payment on a $12,100 credit card balance, according to court documents. Next is St. Paul-based Crosstown Mechanical, owed $9,500 for HVAC and commercial refrigeration work.

A Jan. 23 ruling by U.S. Bankruptcy Judge Kathleen Sanberg allowed Barley John’s to use its cash collateral to continue normal business operations.

The brewpub does about $500,000 in annual sales, according to a court filing.

Barley John’s brewpub was opened in 2000 by John Moore and Laura Subak. Subak is the company’s president and chief operating officer.

They did not immediately respond to a request for comment.

Minnesota state law limits brewpubs to selling the beer they make only on their premises. So in 2015, the couple opened a 14,000-square-foot production brewery and taproom over the border in New Richmond. That allowed Barley John beer to be sold in liquor stores and on tap at bars and restaurants in both states.

The Wisconsin business was registered in that state as Barley John's Brewing Co. Inc. in 2013.


02 February, 2020