Goodbye to this famous US beer brand: it could close locations soon

The outlook for family businesses in the United States can change drastically in a short time. Some companies, despite having successful products, end up trapped in financial problems unrelated to their main activity. This is precisely what has put the continuity of a well-known craft beer brand based in Florida at risk.

In this case, it's Big Storm Brewing Co., a popular brewery that could see the permanent closure of several of its locations. The company has been affected by the legal situation of its owner, Leo Govoni. He has lost control of more than a hundred companies involved in a bankruptcy process under Chapter 11.

The beginning of an unexpected fall

Big Storm Brewing was founded in 2012 and since then has become an important name in the local beer market. Its offerings included innovative varieties like Tropic Pressure Golden Ale, with hibiscus flowers, and Bromosa Tangerine IPA, made with natural tangerine purée. Later on, they even expanded their business model with the opening of Big Storm Distillery in 2020.

However, behind the rapid growth was a business structure more complicated than it seemed. Leo Govoni, together with his son, expanded the company by opening new locations and acquiring other smaller breweries, such as Darwin Brewing and Fat Point Brewing. This pace of expansion ended up becoming unsustainable due to a lack of financial transparency and the legal conflicts of his business group.

Federal Judge Roberta Colton decided to remove Govoni from control of his more than 100 companies, including Big Storm, Tampa Times reports. According to court documents, he is accused of diverting 100 million dollars from more than 1,500 medical trusts for people with disabilities. As a result of this decision, a court-appointed administrator has taken charge of the assets, with the mission of recovering the lost money and protecting the interests of creditors and workers.

A brand at risk of disappearing

So far, four of the locations Big Storm had in Florida have already closed. Only the brewery and distillery located in Clearwater remain operational, although now under the control of the administrator appointed by the court. The rest of the establishments haven't been as fortunate, and their reopening isn't guaranteed.

The brand's website still tries to convey optimism to its regular customers. In its promotional message, they invite people to visit the Clearwater location to enjoy their craft beers and award-winning liquors, made on site. Despite the situation, the company seeks to keep the customer experience as one of its priorities.

The future of Big Storm Brewing will depend on its ability to generate revenue that helps cover the business group's debts in the United States. If it can't prove its profitability, it's likely that its last location will also end up closing its doors. In such an uncertain scenario, not even a success story in the world of craft beer is a guarantee of survival.