Smuttynose Brewing Acquired by Bank for $8.25M

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A bank auction was held today and the big ticket item was none other Smuttynose Brewing Company. But there weren’t any takers, and following the auction, Provident Bank announced they had bought back the brewery for $8.25 million.

According to a report on Seacoastonline.com, the auction took place at the brewery and bidders were required to put down $250,000. Bidding was set to open at $10 million.

The Search for Buyers

Provident Bank is already negotiating with six potential buyers. New Castle Capital Group is one of the six and according to its leader, Norman Rice, they have a purchase agreement in place. He went on to say that he doesn’t want to change to change the brand and would like to keep the brewery running.

However, the bank President Charles Withee said that such a deal was not complete.

In the meantime, the status quo at Smuttynose is unchanged. According to spokeswoman Barbara MacLeod, the brewery will continue to operate as before and that no employees would be losing their jobs.

Several Breweries Stumbling

Smuttynose isn’t the only brewery that’s been struggling. The beer marketplace has been contracting and at the same time, beer drinkers have more options than ever. With so much competition, several big-name breweries have been hurt during this downturn.

New Belgium and Pabst have had to lay off employees. Green Flash Brewing is seeking recapitalization and has also laid off employees. Boston Beer Company shares have tumbled.

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