Summit Brewing saved at the buzzer: new lender steps in, foreclosure avoided
· Written by El pana ClaudioSummit Brewing, the St. Paul, Minnesota brewery known for its Extra Pale Ale and around since 1986, announced Thursday that its debt with BMO Bank is moving to a new lender. That pushes back the foreclosure that had it on the ropes for the past month. The new lender's name hasn't been made public.
The trouble had been brewing for a while. According to court filings cited by MPR News and KSTP, Summit missed a payment at the end of last year, the bank gave it a forbearance period until July 31, and in September BMO sued to foreclose and put its assets into receivership. All told, the brewery owed the bank $8.2 million.
Now the new lender will work with Summit on what the company calls a recapitalization and long-term growth strategy. In the meantime, the brewery, taproom and operations keep running as usual, with no expected changes to supply. President and CEO Brandon Bland called it a day of gratitude and excitement, and said he wants to see the brewery thrive for the next 40 years.
Why it matters: If a brand with 40 years of history can go through a scare like this, no brewery is bulletproof. The lesson for the island's brewers is the usual one: watch the numbers as closely as the recipe. And for the rest of us, the best way to keep a brewery you love alive is to keep showing up.