Old Majestic Brewing closes its doors; facing $1.3 million lawsuit from landlords
Roughly three and a half years after opening its doors, Old Majestic Brewing is no more.
The Mobile brewery, located on St. Louis Street adjacent to The Cheese Cottage, announced the closure Friday on its Facebook page.
No explanation was given, but court documents show the brewery owners, Chad Marchand and John Minton, are being sued by the property owners, 660 St. Louis St. Land LLC, for $1.3 million in damages. The landlords are also seeking an immediate eviction order.
At the heart of the issue is the brewery’s failure to pay the agreed upon rent. When the two parties signed the lease in January 2018, the rent for the first five years was set at $13,987 per month, and would rise to $14,686 in years 6-10. According to the lawsuit, the property owners spent roughly $2.83 million to relocate and renovate an 8,489-square-foot former cotton warehouse from Greenwood, Miss.
The brewery opened for business in December 2019. By January 2021, Old Majestic was seeking investors to ostensibly aid with expanding the business, with Marchand and Minton promising a $170% return over the next six years. It’s unknown how many people invested.
But just over a year later, court documents show Old Majestic owed the landlords more than $221,000 in past due rent. In an agreement signed in March 2022, 660 St. Louis Street Land agreed to settle the past due rent for $70,000, plus forfeiture of more than $26,000 in security deposits. Old Majestic also agreed to pay a percentage of gross revenues each month to the property owners, with the percentage ranging from 1% to 3%, depending on the amount of the gross revenues.
In return, the property owners agreed to lower the monthly rent to $10,000 per month through December 2024, with the rent reverting back to the original $13,987 after December 2024.
By last December, however, Old Majestic filed for Chapter 11 bankruptcy protection.