KALAMAZOO, Mich. (WOOD) — The popular Arcadia Brewing Company in Kalamazoo appears to be in serious financial trouble, with documents showing it owes some $1.4 million to the bank.
According to documents 24 Hour News 8 obtained Wednesday, the craft brewery is facing bank foreclosure and owes thousands of dollars in taxes. If the problem isn’t resolved, its property could be sold at a public auction to the highest bidder as early as Dec. 20.
A public notice shows Arcadia owes $1,409,677.12 on its mortgage. That doesn’t include additional costs and expenses the bank incurred to recover the debt. Public records also show Arcadia owes more than $150,000 in taxes.
Founded in 1996 in Battle Creek, Arcadia opened its Kalamazoo pub and brewery in May of 2014.
“We’ve got a tremendous beer culture in Michigan,” Arcadia founder Tim Suprise told 24 Hour News 8 at the groundbreaking ceremony in 2012. “It’s just a great time for us to be putting this signature project here in Kalamazoo.”
But there have been signs of trouble along the way. Arcadia closed its downtown Battle Creek location last year after a money dispute with the property owner. An Arcadia employee who wanted to remain anonymous sent 24 Hour News 8 a statement Wednesday saying he’s not surprised the brewer is facing financial troubles.
“Arcadia has a reputation that they pay their bills late,” he wrote.
Suprise issued a statement Wednesday morning that says, in part, “…we are certainly a company in transition” and are “engaged in a process that will … ensure we continue to be integral part of the community in Kalamazoo.”
The statement goes on to say, “…the fulfillment of both Arcadia’s potential as a destination and a brand requires us to identify and engage with a strategic partner to achieve that goal, of which we are currently engaged.”
Suprise said in the statement Arcadia will maintain its 45 to 55 jobs.
That statement went on to say that Arcadia looks forward to sharing more details when appropriate about its transition, saying that it will position the company to “grow and thrive.”