Modern Times Beer Likely to Be Sold Through Court-Ordered Receivership Sale
Modern Times Beer of San Diego has announced that its senior lender has filed legal action that likely will result in receivership and a sale of the brewery.
“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,” the company posted on their web site.
Modern Times has been struggling since the onset of the pandemic when it furloughed many hospitality staff members in July of 2020. The company announced a few months ago that it would be permanently closing four of its locations.
The court-ordered sale of the brewery will likely be as an ongoing business. “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,” the company post said. “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.”
See the full company statement here.
