Founders Brewing shutters Detroit taproom
"This decision involved a lot of careful consideration of each aspect of our business, and ultimately, what we felt was best for the company and our employees overall," Founders CEO Elton Andres Knight said in a statement. "We explored every possible avenue to course correct the business and gave it as much time as we could. We are now working diligently to find new positions within the company for the employees who are displaced upon this closure."
Requests for additional comment were not immediately returned.
Founders opened the location at 456 Charlotte St. near The District Detroit in November 2017. It spent $4 million to renovate a 14,000-foot-building that was previously home to the Cass Corridor Food Co-op. The taproom has a 400-person capacity, including a large outdoor patio.
After opening to much fanfare, Founders later struggled under the weight of charges of racism and the impact of the COVID-19 pandemic.
In 2019, the brewer settled a racial discrimination lawsuit filed by former manager Tracy Evans. Evans alleged Founders tolerated a racist internal culture and that the company fired him as retaliation for complaints to human resources about racism on staff. Following the claims, Founders faced a backlash and it temporarily closed the Detroit location.
At the time of its 2017 opening, Founders co-founder Dave Engbers said opening a taproom in Detroit allowed the company to be part of the city's comeback while also spreading the craft beer culture out from the brewery's Grand Rapids base.
Founders earlier this year was absorbed into Mahou USA, a group owned by Spain-based Mahou Imports. Mahou Imports in 2019 purchased a 90-percent stake in Founders, which in 2014 sold a 30 percent stake to Mahou to help bolster Founders' expansion.
Source: Crain's Detroit Business
