In business, the adage “seller, beware” has always been sound advice. When putting one’s company up for sale or offering shares in exchange for investment in an enterprise, it’s important that everyone’s cards be turned face-up on the negotiating table so both parties can rest assured everything is on the level and that the math maths. It’s the first step to forming the basis for trust that is essential to any business partnership.
In situations where there is a sense of desperation, business owners may put unwarranted faith in potential partners offering to throw them a lifeline. Such was the case for Diane and Sean Hilz after they shuttered their two-year old company The Roadies Brewing the last weekend of August. When doing so they put out an invitation for people interested in investing in their Vista brewery for the purpose of reopening it to get in touch with them.
Within a matter of weeks, not one but two parties – the owners of Metrico Hospitality Group (MHG) and Mexico City Cuisine – signed on. In doing so, they made clear their aims to not only revive the brewery and its combo taproom and live-music venue, but significantly increase the size and scope of the operation, primarily through distribution of its beers throughout Southern California. MHG owners John Collazo, Dax Parra and Daniel Torres laid out plans to launch a distribution company for that express purpose. Meanwhile, Mexico City Cuisine owner Leo Garcia, whose business is located two suites over from The Roadies, vowed to provide food service to the brewery’s taproom, allowing it to extend into lunchtime hours.
All of the above sounded great to the Hilz, who shook hands with their partners-to-be and, to a large extent, put their passion project in their hands. This included going against their better judgment and rushing the reopening of their taproom to October 1, per MHG’s owners’ request. The Hilzes thought that seemed way too early, considering they hadn’t yet even hired a replacement for The Roadies’ former head brewer and had no new beer to offer. But not wanting to make waves, they went public with the news, announcing The Roadies was coming back and setting an official relaunch date of October 1.
Fans of the business and local craft-beer enthusiasts rejoiced that a brewery which, save for its financial struggles, had a lot going for it – quality beer, a stylish taproom and quality programming, including an extensive live-music calendar – had been rescued. The Roadies saw a good amount of patronage in its first two weeks back and all seemed right with the world. Then came a meeting between the Hilz and their investors yesterday.
According to the Hilzes, that get-together started with their partners stating how excited they were about the opportunity to be part of The Roadies and ended with them expressing how sorry they were about having to walk away from the business. They say the CHG team reported having put forth their best efforts to secure additional capital, but that they had been unsuccessful. Because of that, they were no longer in a position to become partners. Garcia was similarly short on funds to make the investment he had previously committed to.
So, the Hilzes are on their own once more and in a worse spot than before. In addition to operating their business for 16 days without the influx of cash they had been expecting, they also hired a new head brewer, a veteran from Stone Brewing who has already put in time at what was to be his new workplace. As one would expect, the couple is upset, disappointed and, despite the fact they held up their end of the partnership, embarrassed for themselves as well as the legacy of their brewery. They also feel bad for the “emotional roller-coaster” their customers have been subjected to over the past two months.
More than anything, the Hilzes say they feel sorry for their staff, including employees they had rehired for The Roadies’ would-be second chapter. Those individuals will continue to work the taproom through the weekend, with Sunday, October 18 being the final day of service for the business…again.
The Roadies Brewing is located at 1495 Poinsettia Avenue, Unit 148 in Vista