Over the weekend, several outlets reported that Green Flash Brewing has placed its recently built Virginia Beach brewery on the market to sell. This morning, reports out of Virginia indicate a “closed for business” sign has been hung at the Virginia brewery, and West Coaster magazine revealed that Green Flash has let go 36 employees at the location, and that the closing is part of a “strategic overhaul” brought in part by a new group of investors in the Green Flash company.
A posting to the web site of assets liquidator and auction house Heritage Global Partners headlined, “Amazing Turnkey Opportunity for a 1 Year Old 50 Barrel Brewery Operation” lists all assets of the 50-barrel brewhouse and tasting room at 1209 Craft Lane in Virginia Beach, which Green Flash opened in late 2016.
A representative of Heritage Global told the Reader that the listing posted late last week, and has already generated more than 50 inquiries. The sale is not being handled as an auction, rather the firm is entertaining offers from qualified buyer-operators, who will take over the entire brewery property as a turnkey brewhouse and operate it as such. While there is no fixed price, the seller indicated that it’s not a situation where a 500-thousand-dollar offer would be entertained as serious, adding, “It’s not a fire sale.”
Last month, beer industry news site Brewbound reported that Green Flash was seeking to take on new investment capital to help manage debt on the $20 million Virginia Beach brewery, and that the once profitable brewery had slipped into the red despite $27-million in revenue in 2017.
Green Flash CEO Mike Hinkley confirmed to West Coaster that it has acquired unnamed financial investors, and the resulting leadership group has decided to divest the assets. In January 2017 and again in January 2018, Green Flash laid off dozens of employees, the last round coupled with a decision to stop distributing to all 50 states. At that point, Green Flash restricted shipments to 32 states. It will reportedly further reduce its output, to only 8 states: California, Arizona, Nevada, Utah, Colorado, Hawaii, Texas, and Nebraska, where the business still expects to open a brewpub this year.
Hinkley did not respond to further requests for comment.