Magnolia Brewing Co. filed voluntarily for Chapter 11 bankruptcy protection last week in a last-ditch effort to save the business. Owner Dave McLean is quick to reassure that despite the financial status change, Magnolia will continue to operate as normal. "Our company is doing well from an operations standpoint," he said. "We just have a lot of debt, and our operations are profitable, but not profitable enough to cover our debt service." Filing for bankruptcy protection will allow Magnolia to stay open and pay back creditors over time.
"We're able to keep doing things exactly as we do. Our sourcing is the same and our execution and the kind of experiences we try to deliver to people are all on track to stay the same," McLean said. "It should be relatively invisible from a guest experience standpoint and quality standpoint. You'll see the same faces and same things coming out of the brewery and kitchens."
McLean founded Magnolia Brewing Co. in 1997 and in 2014 expanded with Smokestack in the Dogpatch. McLean also owns Alembic, which he said is unaffected by this filing.