Latest news with #ArmedForcesBrewingCompany
Yahoo
11-04-2025
- Business
- Yahoo
Shuttered Norfolk brewery at center of ‘woke mob' controversy needs nearly $2 million in 20 days
An image of Armed Forces Brewing's planned "military tribute" brewery in Norfolk used in the company's marketing. 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. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
14-03-2025
- Business
- Yahoo
757 embraces ‘local woke mob' slogan after credited with controversial brewery closing
NORFOLK, Va. (WAVY) — The Armed Forces Brewery had a controversial arrival into the 757. So it should come as no surprise that it would leave the same way. Armed Forces Brewing Company leaving Norfolk, to relocate elsewhere After its tumultuous arrival into Ghent despite the hurdles and protests from some locals, the business is closing its doors and seeking relocation. The CEO, Alan Beal, blamed the 'local woke mob' for its lack of success; a phrase that some residents and businesses have now adopted as a satirical badge of honor. Armed Forces Brewing Company opens up its taps Executive Director of the 757 Creative ReUse Center, Beth Dryer, has been invested in the downfall of the brewery since discussions of its arrival back in 2023. Dryer was among those who spoke at the Norfolk Town Halls explaining why the business should be barred from coming. Happy to see the business leave, Dryer created pins with the phrase 'Local woke mob.' When Dryer heard the news of the closing, and the CEO's reasoning, she decided to use the 18 pin kits from her locally-owned thrift supplies and crafts store to make pins that could be handed out with any donation. Upon seeing the success of her product, Dryer has order more products with the same design, including 200 stickers, more pins and even T-shirts. A fundraiser was created for those wanting a shirt, already surpassing the store owner's goal. Norfolk Candle at Selden Market is another business embracing the phrase and branding it into their products. The Local Woke Mob candle has recently been restocked after selling out. The candle 'smells like banned books', according to the company's website. The community's response to the product was described as 'beautiful.' Norfolk Candle donates $3 from every 'Local Woke Mob' candle to The Freedom to Read Foundation. Back when resident got wind of the business' potential arrival, many were not thrilled, citing supposed anti-LGBTQ+ rhetoric. One of its owners, Robert O'Neill, allegedly made racist and homophobic remarks. O'Neill is a former U.S. Navy SEAL Team 6 member who says he shot and killed Osama Bin Laden. Military-themed brewery wants to open in a big Navy town. An ex-SEAL is getting in the way After push back from political leaders, threats of lawsuits from the company and protests from locals, the business was finally established in Norfolk. The business became a money pit in 2024, reporting an unaudited net income loss of $1.76 million in June 30, 2024 for the six months prior, according to the Securities and Exchange filing. Armed Forces Brewing Company attorney challenges legality for denial of conditional permits in Norfolk During the beginning and end of the six-month period, the business dropped from a cash and cash equivalent of $282,549 to just $12,239, according to an unaudited report. Black Lives Matter 757 President JaPharii Jones said the city of Norfolk and the surrounding community were not OK with the 'anti-woke' rhetoric. 'We had expressed our disdain and disapproval of the brewery and them not seeming to be very open to inclusiveness,' Jones said. The closing of the brewery is a testament of what can happen when communities band together to not support something, Jones said. 'A 40-day boycott is also underway for companies like Target and Amazon for ending their Diversity, Equity and Inclusion initiatives, Jones said. 'It goes to show that if you don't, you know, support your surrounding community, if you're not inclusive, your business very well might be shut down by the 'local woke mob,'' Jones said. Jones said he thinks the business could've succeeded if they were willing to listen to the locals. 'I'd rather them have a sit down, talk to people, find out their concerns, address those and maybe something could've been fixed,' Jones said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
07-03-2025
- Business
- Yahoo
Armed Forces Brewing Company leaving Norfolk, to relocate elsewhere
NORFOLK, Va. (WAVY) — The Armed Forces Brewing Company's tumultuous time in the Mermaid City is coming to an end, as its CEO said Thursday he would close the taproom and brewing facility and move it to another location, and that he planed to file criminal complaints 'against some of the perpetrators' that he claims forced his hand. 'Because of the actions of a group of people with a woke agenda who continue to affect our ability to operate profitably in Norfolk, we have closed the taproom and brewing facility in Virginia and plan to relocate our business to a more pro-small business social and economic climate,' said Alan Beal, CEO of Armed Forces Brewing Company. In December 2023, Norfolk City Council approved a conditional use permit for the brewery, which took over the former O'Connor Brewing building on W. 24th Street in the Park Place neighborhood. Controversial Armed Forces Brewing gets permit approved by Norfolk City Council That approval had come after months of heavy pushback from the community, which had argued that the company's messaging was divisive and bigoted, in particular, comments made by former Navy SEAL and company spokesperson Robert J. O'Neill, and that the brash military theme was a 'cheap marketing ploy' and disrespectful to the region's prolific military contingent. Norfolk residents, elected officials and those in the craft beer industry said they were not thrilled by anti-LGBTQ+ rhetoric and other 'divisive' messaging coming from the Armed Forces Brewing Company, which had announced its intention to locate in Norfolk in July 2023, just after O'Connor Brewing had announced that it was closing up shop at W. 24th Street after 13 years, with the military tribute brewer and veteran-owned and operated Armed Forces Brewing taking its place. 'Divisive' brewer coming to Norfolk gets pushback from residents, elected officials Beal said the company had chosen Norfolk for its large military and veteran community, and appreciated the support it did get in the region. The Norfolk location was Armed Forces Brewing's flagship brewery and its first in Virginia. , as a news release about the brewery noted that the Virginia Economic Development Partnership worked with the city of Norfolk and the Hampton Roads Alliance to secure the project for Virginia, with Norfolk winning out over locations in Florida and Maryland for the project. The Virginia Economic Development Partnership came up with Project Seawolf, which offered Norfolk's O'Connor Brewing for sale and more than $300,000 in tax incentives to Armed Forces Brewing, , which itself cited reporting from the . Virginia_s_Financial_Offer_for_Project_Seawolf_3.8.23-1Download But after it opened its doors Jan. 27, 2024, Armed Forces Brewing lasted in Norfolk just over a year before Beal's announcement Thursday. 'Unfortunately, our ability to profitably operate in Norfolk was severely affected by the local woke mob — a few individuals in the area who have no love for the traditional American values we hold as a company,' Beal said. 'These people spread outright lies about our company, our employees and our shareholders before we even opened our doors. We unfortunately live in a world where getting called a 'homophobe,' 'transphobe' and 'racist' over and over by a small number of people can get amplified online making it difficult for a small business to overcome at the local level. The sad fact is that some people believe what they hear regardless how obviously false it is. The sadder fact is these people cost good people in Norfolk their jobs.' When Armed Forces Brewing announced its arrival to Norfolk, the governor's office noted it would create 47 new jobs and employ at least 70% of its workforce company-wide from U.S. military veterans. Beal accused 'the local woke mob' of spreading lies about the business and filing false complaints with local authorities, while also threatening local companies who worked with Armed Forces Brewing. He said in addition to filing criminal complaints in Virginia, they intend to help in prosecuting them. 'We fought back and will continue to do so, but the cumulative effect of their actions have made it impossible to profitably run the taproom from Norfolk,' Beal said. 'As a result, the building and taproom will be put up for sale while we look for a new home and headquarters in a friendlier environment.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
