Shuttered Norfolk brewery at center of ‘woke mob' controversy needs nearly $2 million in 20 days
Armed Forces Brewing Company, the lightning-rod military tribute beer company that closed operations in Norfolk last month, is teetering on the brink of survival.
In an April 4 Securities and Exchange Commission filing and in emails to investors, Chief Executive Officer Alan Beal reported that the company was $1.7 million in debt, despite raising millions in recent years, and needs $2 million of investment by April 29 or it may permanently cease operations or file for bankruptcy.
The brewery closed its taproom last month a year after opening. That followed a controversial launch after hundreds of community members opposed what they said was a divisive business whose marketing glorified violence, threatened LGBTQ people, and said those with different views don't love America.
Today, Armed Forces is a brewing company unable to make and distribute beer.
A year after opening, controversial Norfolk brewery closes
The April 4 filing reveals a company in freefall. Norfolk's City Treasurer padlocked its brewing facility for failure to pay taxes. Its contract brewing partner in Florida stopped production last summer after it failed to pay its bills. Three of the four board members who remained after an earlier purge have resigned, leaving only Beal. A growing number of creditors are suing or threatening legal action. The building, owned by a company controlled by New Jersey entrepreneurs (Armed Forces owns 28%), is on the market for $5.45 million, $2 million more than the 2023 purchase price, according to city records. Now, some who have invested money into the venture are rebelling.
Maryland investor and Navy veteran Jeffrey Allen Davis said after he posted on Facebook about exploring a class-action suit that he heard from numerous others who were also interested in taking action against the company. While he doesn't expect to get back his investment, he and other disappointed investors plan to create a website and explore their legal options.
'He's a fraudster,' Davis, a refrigerator engineer and eight-year veteran who invested $1,000, said of Beal. 'He's just a scam artist.'
Davis was one of the investors whom Beal emailed recently, begging for money to stay afloat. Beal also took to social media and YouTube on the Survival Dispatch News, a prepper site, to lash out against his detractors even as the SEC filing reveals a company that burned through more than $8.5 million from investors and still went deeply into debt in just a few years. He also claimed he'd filed criminal charges against some opponents, though The Mercury could find no record of that in local courts.
'The city treasurer, who appears like many in the city government to sympathize with or to be afraid of the woke mob and their social agenda, with no legal basis whatsoever had locksmiths change the locks on the building we were leasing, and have to this date prevented us from accessing the building and its contents, including a large amount of beer on the premises and in the tanks,' Beal wrote in the SEC filing. 'This has caused additional economic damage as we are unable to fulfill contracts to distribute the beer being held hostage by the city's actions.'
Norfolk Treasurer Daun Hester declined to comment through a spokesperson. Ironbound AFBC Properties LLC, the owner of the property, has paid $47,761 in delinquent property taxes. There is a balance due for fiduciary taxes, which include amusement and food and beverage taxes, that the spokesperson said was not public information.
Debts and suits accumulating
The tax lien is a fraction of Armed Forces debts. Liens have been filed against it for more than $87,000 by a construction company, more than $10,000 by a fence company, and more than $11,000 by a design company. Lawsuits, according to the SEC filing, have been threatened by three lenders it owes more than $350,000. Ironbound AFBC Properties LLC, owner of the brewery's building, is owed $321,000 in back rent. Armed Forces also owes the Virginia Department of Labor nearly $27,000 for failing to meet its last employee payroll.
Other bills may be outstanding. Armed Forces ran a promotion with the Norfolk Tides last season. Joe Gregory, the team's general manager, did not return a call seeking to find out whether it had been paid.
John Newell, Armed Forces' former logistics manager, and his wife Martha have filed a warrant of debt in Norfolk General District Court with a hearing date next month. Nicole Couch, the taproom manager who Beal left to tell employees they were closing, said she and others have not received their final paychecks.
Gov. Glenn Youngkin announced Armed Forces' move to Virginia in July 2023, touting $300,000 in incentives. A spokesman for the Virginia Economic Development Partnership said Armed Forces qualified for $24,500 in hiring support, but did not apply for it. It's not clear if any other incentives were paid. Sean Washington, Norfolk's head of economic development, said the city did not provide any funding to the company.
Armed Forces quickly burned through millions
As it began brewing in Norfolk, the company raised about $8.5 million from more than 10,000 investors who paid a minimum of $200 in what was essentially a crowdfunding campaign. Some contributors said their rewards, ranging from stickers to hats, never arrived. Those investors have no voting rights and have received no dividends. The stock cannot be sold on the open market.
Armed Forces lost $1.76 million for the first six months of 2024, according to an SEC filing. The company lost $2.4 million in 2023.
Armed Forces Brewing does not own the former O'Connor property, according to SEC filings. It is owned 72% by a third party, Ironbound AFBC Properties, LLC. Armed Forces has the remaining 28%, but the SEC filing reports that even if the facility is sold, it's not clear whether Armed Forces will be paid, or if the proceeds will be applied to the debt.
The third-party owners include Evan Almeida, a principal in Ironbound who was briefly on the Armed Forces board. He has a property investment firm in New Jersey and is also an owner of EmpireATM. He and his brother, Michael, are listed as $50,000 to $99,000 investors on the Armed Forces site. Evan Almeida did not respond to an email seeking comment.
According to the SEC filing, Armed Forces' lease with Ironbound called for $549,600 payments in 2024 and 2025.
Beal claimed the company was considering a plan to brew in San Diego, St. Louis, and Florida though it's not clear how many, if any, employees remain.
'We plan to relocate to a city and a state that actually loves American values and is pro-business and absent of any woke mob mentality,' he wrote in one of two fundraising emails.
In another email, Beal said 'we have had 80 members of our shareholder family pledge almost $100,000.00 of new investment commitments and another 25 who are in the process of completing approximately $10,000 more towards our $1.7M-$2M funding goal.'
He said any money raised would be held in escrow until the company raised enough to pay off or refinance its debt. If it did not meet the $1.7 million goal, Beal said the funds would be returned.
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