Fair State Brewing will close production facility amid economic 'headwinds'
Fair State Brewing Cooperative is scaling back in a significant way.
In a memo sent to staff, obtained by Bring Me The News and confirmed by an employee, the brewery says it has continued to face "headwinds" after exiting Chapter 11 bankruptcy last summer. It will now close down its St. Paul production facility, a move that will include layoffs.
"We plan to sell our assets, transfer the lease to a third party, and wind down over the coming months," the letter from CEO Evan Sallee states, adding that the change will only impact its production facility and not its Minneapolis taproom.
Representatives for Fair State Brewing Cooperative did not respond to a request for comment.
The taproom (pictured below) and its small-batch brewery will remain open, according to the memo, as will Chef JohnMichael Lynch's Farina Rossa pizza counter, which recently began serving food in the taproom.
Lynch tells Bring Me The News that the changes won't impact Farina Rossa's taproom service.
Sallee's memo adds that Fair State will "create partnerships" to handle "large-scale production" of its most popular beers in an effort to keep them available outside of the taproom. "Favorites like Pils, Mirror Universe, and others will still be available year-round," the letter states.
While the memo does not go into detail, it says the "operational changes" will include layoffs. "The reality is that we have exhausted every means possible," he writes. "Without these changes, we simply do not have any other way to keep Fair State doing business at all."
Fair State became the nation's first unionized microbrewery in 2020 after the company voluntarily recognized staff's unionization efforts. Workers unionized with Unite Here 17, which represents service industry workers at many restaurants, bars, and hotels in Minnesota.
"We're saddened by Fair State's announcement," a representative for Unite Here tells Bring Me The News. "Workers in this industry deal with uncertainty, but they don't have to resign themselves to feeling powerless. Because Fair State workers are union members, they have already won some safeguards in their union contract to deal with the impact and have ways to bargain together for more compensation than they would get if each worker was facing a layoff or closure alone."
Last February, Fair State filed for Chapter 11 bankruptcy. At the time, it said the move was part of a plan to recover from significant debts that started with the pandemic.
In August, Fair State announced that it had exited bankruptcy.
It had projected that sales could surpass $14 million by 2027, according to court filings reported by the Star Tribune. It had also planned to put the new profits into $3.3 million worth of new equipment over the next three years, according to the report.
No timeline was provided for when the St. Paul production facility will close outside of a statement that it will "wind down over the coming months."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
10 hours ago
- New York Post
Craft giant Michaels buys Joann's intellectual property, fan-favorite labels
NEW YORK — Craft labels from the now-shuttered fabrics seller Joann are making their way to a new home: Michaels. The Michaels Companies announced on Thursday that it had completed its purchase of Joann's intellectual property and private label brands — in an acquisition that arrives as the Texas-based arts and crafting chain works to expand its own fabric, sewing and yarn offerings. 'We're honored to have the opportunity to welcome JOANN customers into our creative community and are committed to delivering the selection, value, and inspiration they are looking for at Michaels,' Michaels CEO David Boone said in a statement. Advertisement Craft labels from the now-shuttered fabrics seller Joann are making their way to a new home. Christopher Sadowski The deal, he added, allows the company to better 'respond to rising demand' among both new and existing customers. Financial terms of the acquisition were not disclosed. The Associated Press reached out to Michaels for further information on Friday. Advertisement With roots dating back to a single Ohio storefront in 1943, Joann had grown into a destination for generations of sewers, quilters, knitters and lovers of other crafts for more than 80 years. But more recently, operational challenges continued to pile up — with the retailer pointing to sluggish consumer demand, inventory shortages and rising competition. Joann announced it would be going out of business back in February, just one month after filing for Chapter 11 bankruptcy protection for the second time within a year. Advertisement The Michaels Companies announced on Thursday that it had completed its purchase of Joann's intellectual property and private label brands. NurPhoto via Getty Images At the time, the company said financial services company GA Group, together with Joann's term lenders, had been selected as the winning bidder to 'acquire substantially all of Joann's assets' and conduct going-out-of-business sales at all store locations. Michaels on Thursday said that its purchase of Joann's IP and private brands included the acquisition of 'Big Twist' yarns, which had become a staple in Joann stores over the years. Those 'Big Twist' labels are now being developed as part of Michaels' portfolio — and will be available in-stores and online later this year, the company said. Advertisement In the meantime, Michaels has also dedicated a landing page to welcome former Joann customers online. And as part of its overall expansion into fabrics, Michaels said on Thursday that its adding more than 600 new products from new and existing brands — including quilting supplies and fabrics, specialty threads, sewing machines and more. Michaels, founded in 1973, currently operates 1,300 stores across 49 U.S. states and Canada. Its parent company also owns Artistree, a framing merchandise manufacturer.
Yahoo
a day ago
- Yahoo
Inside the newly remodeled Walmart Supercenter — one of 22 planned in Minnesota
Inside the newly remodeled Walmart Supercenter — one of 22 planned in Minnesota originally appeared on Bring Me The News. On Friday, Walmart unveiled a remodeled Supercenter in Blaine, one of many such refurbishments the company has planned for this year. The June 6 ribbon-cutting ceremony was accompanied by donations to local organizations, as well as the unveiling of the "Blaine Community Mural" designed by Minnesota-based artist Adam Turman, who has created commemorative artwork for the Minnesota State Fair and had a pop-up at the Mall of America last year. The upgrades at the 181,000-square-foot store, which originally opened at 11505 Ulysses St. NE in 2002, include new signage, expanded departments with new items, expanded online pickup and delivery space, a pharmacy refresh, and the addition of a "Mother's Room." The pharmacy update includes wider aisles, the addition of a private screening room, and private checkout areas. During the ribbon-cutting ceremony, Walmart announced donations to the Blaine Police Department ($3,000), the Alexandra House ($2,000), and the Blaine High School Baseball Dugout Club ($1,000). Last month, while reporting first-quarter profits, Walmart revealed that it has already raised prices on some products and plans to implement more price hikes in response to Trump administration tariffs. "I'm concerned that consumer[s are] going to start seeing higher prices," Chief Financial Officer John David Rainey said. "You'll begin to see that, likely towards the tail end of this month, and then certainly much more in June." Walmart isn't alone in hiking prices in what they say is a response to tariffs. Even Target has said that it's an option that's on the table. Though, Target CEO Brian Cornell called it a "last resort." Walmart's Blaine opening took place on the same day as the opening of a remodel at Walmart's Worthington location as well. The company says that 22 locations (none have been revealed) in Minnesota will get similar upgrades this story was originally reported by Bring Me The News on Jun 7, 2025, where it first appeared.
Yahoo
a day ago
- Yahoo
How condo owners are affected when an association files for bankruptcy
Bankruptcies have traditionally been rare for community associations, but two recent filings by condominium associations in Miami-Dade and Palm Beach counties just a week apart could represent the start of a troubling trend. The first was in late April, when the Green Terrace Condominium Association filed for Chapter 11 bankruptcy, which is designed to allow filers to reorganize their finances under court supervision while remaining operational. Chapter 11 bankruptcy, which is also commonly referred to as reorganization bankruptcy, is the most common type used by associations. The community's residents were alerted about the filing via letters posted on their doors stating: 'The association has faced significant challenges over the past decade, including various criminal and civil litigation and substantial mismanagement by previous board members. The current board is actively working to address these issues and is optimistic the Chapter 11 filing will lead to a favorable outcome for all involved.' The filing came after the city of West Palm Beach notified the community that it planned to shut off its water service due to its outstanding balance of more than $1.4 million. The city is also owed $2.5 million in code enforcement liens, and it is just one of dozens of creditors listed in the filing. The cutoff of water service to the community was suspended by the bankruptcy filing, which has provided residents with more time to find and move to new homes. The reports indicate 20 people have applied with the city for up to $7,000 in emergency rental assistance for new apartments, and 16 have met the eligibility requirements. The circumstances behind the bankruptcy filing for the Ocean 5 Condominium Association on May 2 are different. The five-story building at 458 Ocean Dr. in Miami Beach has only 13 units and was completed in 2006, and it apparently resorted to a Chapter 11 bankruptcy filing as a result of a $583,000 civil judgment awarded to one of its unit owners. According to a report by the South Florida Business Journal, the association originally sued the owner in 2019 for allegedly conducting unauthorized short-term rentals and causing a disturbance involving one of its renters that drew media attention, which harmed the property's reputation. The owner filed a counterclaim against the association alleging it used the lawsuit to retaliate for the negative publicity, and it deactivated the owner's key to access the building without cause. The unit owner ultimately prevailed and was awarded the damages for lost rental income and emotional distress. The bankruptcy filing, which lists the owner as the association's sole creditor and claims assets valued at less than $130,000, states that the Miami-Dade Circuit Court jury's ruling is currently under appeal. While the conditions at these two associations that led to their bankruptcy filings are different, they both share a common factor. Involvement in civil litigation took a toll on the financial well being for both, and for Ocean 5 the judgment in favor of the owner's countersuit appears to have been the sole cause of its insurmountable debt. Indeed, litigation is among the most common drivers for association bankruptcies. It can present unexpected costs that create insoluble financial shortfalls, so associations should turn to it only when all other reasonable options have been exhausted. In addition to such legal setbacks, associations can also be forced into bankruptcy by significant financial mismanagement or theft, uncovered property damage, high rates of owner delinquencies, and the costs associated with inspections and repairs. Chapter 7 bankruptcies, which are also available to associations, are designed to liquidate assets in order to pay off debts, so they are generally an unrealistic option. Associations' assets are all jointly owned by their unit-owner members. Instead, most association bankruptcies take the form of Chapter 11 filings, which enable them to restructure their debts with the benefit of an 'automatic stay' to halt creditor collection proceedings unless they are otherwise allowed by the court. They provide opportunities to negotiate with creditors, cancel or renegotiate contracts and avoid the seizure of assets and garnishing of bank accounts. Just as with litigation and foreclosures, associations should consider bankruptcy only as a last resort. They will need to pay both attorneys' fees and court costs, plus fees for a trustee if one is appointed, and they typically will not be allowed to completely wipe away debts and judgments. Their actions and reorganization plans will be highly scrutinized by their creditors and bankruptcy judge, who may even dismiss the case if it is deemed that the community has not presented a viable restructuring strategy. Those that are experiencing mounting and highly significant financial strains should seek the help of qualified attorneys and other experts to make changes to their budgets and collections that could address and resolve their growing financial woes. If all reasonable options and actions prove to be of no avail, they should give bankruptcy circumspect consideration with the help of highly experienced bankruptcy counsel. Michael L. Hyman with the South Florida law firm of Siegfried Rivera has focused on community association law since 1970 and is based at the firm's Coral Gables office. He is the author of the two-volume 'Florida Condominium Law and Practice' and is board certified as an expert in community association law by The Florida Bar. Michael is a regular contributor to the firm's Newsroom blog at The firm also maintains offices in Broward and Palm Beach counties, and its 49 attorneys focus on real estate, community association, construction and insurance law. MHyman@ 305-442-3334.
