Michigan Brewing Company

On April 24, 2012, the company was evicted from its Webberville headquarters. The property was foreclosed after the company failed to make loan payments.[7] The 76,000 square foot property had been for sale for $1.65 million, and the company reported plans to rent the space, pending its move to Fenton, Michigan.[8] The eviction followed an inability to come to terms with the new owner on a new lease.[9]

Michigan Brewing Company was slated to open a small brewery, restaurant and pub to a renovated Old Firehouse (Fenton, Michigan) in Fenton which was going to be leased/bought ($1 per year for seven years, plus taxes, then a $1.00 purchase) from the City Downtown Development Authority.[10][11][12] Plans were to locate the brewery in the remodeled facility in Fenton, Michigan. General manager/brewer Bill Tadrick said the business is waiting on the architect to complete the plans.[13] Notwithstanding the foreclosure and eviction, city officials expressed optimism that the relocation to Fenton would happen.[9] Meetings to discuss the status of the fire hall lease were scheduled, but never happened.[14]

Unfortunately, due to the closing of the business in Webberville, the lease with Fenton was terminated under mutual agreement by both parties on April 26, 2012.[12][15] Bobby Mason, owner and chief brewer, stated that the brewery was not entirely happy with the proposed arrangement, that they had been preoccupied with the eviction, and that it was for the best, even though half a year's worth of preparation was lost.[16] Reports suggest the location was also being considered by Arbor Brewing Company.[17]

MBC brewpub located in downtown Lansing is a separate entity, sells Michigan Brewing Company product (and also its own brewed on premises) and remains open. They intend to increase their own output.[15][18]

The Michigan Brewing Company was foreclosed upon and its assets sold at auction.[19][20]

All of its assets were sold, including the names and formulae of its beers.[21] Among the assets was the Celis name, which had been acquired by Bobby Mason for Michigan Brewing in 2002.[22] Sushil Tyagi, of Craftbev International Inc. represented the Celis family. He said, “I have been building a brewery with the Celis family ... We’ve already been building the distribution network,” he said. “We’re making all the plans for marketing and branding. This (brand name repurchase) is just the one missing piece.”[22]

The financial failure was the latest part of a series of ongoing problems, including accounting, financing, creditor, and shareholder relations.[upper-alpha 1] Another example: at one point, manufacturing operations ceased and the pub was closed because of a failure to renew the liquor license.</ref> It is said that the ability to craft fine beer, like Pierre Celis did with Celis Brewing and Hoegaarden, is no guarantee of business acumen. One may be able to make great beer, but not have the right stuff to run a company that operates a brewery.[23] As one critic observed: "Mason was like a lot of people running breweries: able to make great beers, but not so keen on finances. He apparently tried to keep the books himself, when a Financial Officer should have been brought in. And he was, like so many businessmen, caught short when a debtor [sic] called in its note, and found himself evicted from his own premises."[23]

In February 2013, brewer Bobby Mason took the company into Chapter 7 Bankruptcy. The Company had over $11 million in liabilities, and just over $50,000 in assets. Creditors and investors, including his parents, lost millions.[24]