St. Paul's Summit Brewing Company faces foreclosure
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One of Minnesota's largest brewers could lose its St. Paul brewery to foreclosure after its lender sued them to collect more than $8 million worth of unpaid debt.
In a lawsuit filed last week, BMO Bank alleges Summit Brewing Company missed a loan payment deadline at the end of last year. The bank then agreed to a forbearance period — holding off trying to collect the loan — until July 31.
But BMO alleges in court filings that Summit indicated in a June letter that it still didn’t have the ability to repay the loan, and that its “liquidity position and operational flexibility continue to deteriorate.”
BMO wants a judge to appoint a receiver who could “take possession of, manage, operate, and property” belonging to Summit, according to the lawsuit.
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In a statement to MPR News, Summit CEO Brandon Bland said they will continue to run their day-to-day operations during the proceedings, but he acknowledged the brewery is facing financial struggles.
"Our Board and management team have made substantial efforts over many months to chart a different course for this company," Bland said. “This reflects the difficult capital environment the entire craft brewing industry is navigating, not a reflection of the strength of our brand, our people or our operating model."
Summit said its company leaders have worked with outside advisors over the course of the last year to find alternative paths forward.
"Despite these substantial efforts, the Company and BMO were unable to reach a resolution, and BMO has elected to proceed with the foreclosure action, including its request for the appointment of a general receiver," Summit said in the statement.
Bland said they'll continue to look at every option available to them as the process moves forward.
No court hearings have been scheduled in the case.
