Armed Forces Brewing Co. didn't tap state grants offered for Norfolk relocation
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When Gov. Glenn Youngkin announced that a military-themed brewery was coming to Norfolk's Railroad District in July 2023, the state offered the company more than $300,000 in grants and tax breaks.
But Armed Forces Brewing Co., which closed its Norfolk taproom and production facility in March, never completed the grant process or received those funds, according to state agencies. And it's unclear whether the brewery, which is facing debt and lawsuit threats, used the tax breaks either.
The brewery arrived in Norfolk in 2023, attracting controversy with its aggressive, testosterone-fueled marketing and brand ambassador Robert O'Neill, the Navy SEAL who claimed to have killed Osama bin Laden.
When the brewery left earlier this year, CEO Alan Beal blamed what he called the 'local woke mob' for undermining efforts to successfully do business in Hampton Roads.
Virginia has incentive tools it traditionally uses to attract companies to relocate to the state. It offered several of those to the previously Maryland-based Armed Forces: up to $24,500 in Virginia Jobs Investment Program grants through the Virginia Economic Development Partnership, up to $213,600 in Enterprise Zone grants through the Virginia Department of Housing and Community Development and up to $70,260 in manufacturing sales and use tax exemptions through the Virginia Department of Taxation.
However, the grant money was never used. Armed Forces was eligible to receive $700 for each net new, full-time job created within 36 months, for a maximum amount of $24,500, said Virginia Economic Development Partnership spokesperson Pryor Green in an email.
'The company accepted the incentive offer but never completed necessary steps to finalize those incentives,' Green said.
Armed Forces also failed to apply for any of the Enterprise Zone grants, which are awarded to companies that create jobs or improve property in certain targeted areas, according to Virginia Department of Housing and Community Development spokesperson Alexis Mehretab in an email.
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It's unclear whether Armed Forces used the tax breaks offered by the state, because a representative with the Virginia Department of Taxation said specific tax situations were exempt from public records laws.
In an April 4 SEC filing, Beal revealed the company was more than $1.7 million in debt and could file for bankruptcy protections or cease operations if money was not raised to cover the debt.
In a May 5 email to investors obtained by The Virginian-Pilot, Beal said the company had raised more than $270,000 in the past few weeks, which was not enough to pay off all the debt. However, Beal said the company has a plan to use that money to move forward with restructuring the business.
At least one Armed Forces investor is also exploring a class-action lawsuit against the company, according to reporting by The Virginia Mercury. The outlet also reported that the Norfolk City Treasurer padlocked the former Armed Forces property after failure to pay taxes. Third party building owner Ironbound AFBC Properties, LLC owes the city $13,444 in taxes, according to city records.
Beal did not respond to a request for comment.
In the May email, Beal said the company plans to pay a missing payroll to employees, move the headquarters to another city and begin brewing beer again with a contract brewery. Beal also said the company would pursue criminal and civil litigation, but did not offer further details on who the suits would be filed against.
Beal said in the email that the company might not make it, but would try to survive.
'We may not win our lawsuits, the criminal complaints we filed may never get prosecuted,' Beal said in the email. 'But we are going to continue to fight, because that's what we do, and that's what the U.S. military that we tribute would do.'
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@pilotonline.com
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