Thursday, September 09, 1999
Oldenberg buyer to keep area presence
Microbrewery stays in N. Ky.
BY PATRICK CROWLEY
The Cincinnati Enquirer
FORT MITCHELL — Oldenberg Brewing Co. is selling its beer business, but the company's brewery, products and restaurant operation will remain in Northern Kentucky.
Silver Creek Brewing Corp. of Sellersburg, Ind., which has offered $450,000 for Oldenberg's brewing operations, plans to maintain the microbrewery's local presence, according to Oldenberg President David Heidrich.
“Oldenberg will continue to be made and sold in Northern Kentucky,” Mr. Heidrich said Wednesday, a day after the potential sale was announced.
“All (10) Oldenberg employees are staying and the brewery will stay open,” he said. “The new owners want to keep making Oldenberg ... and they have a lot of plans to invest in and grow the business.”
Oldenberg filed in June for protection under federal bankruptcy laws. Silver Creek, located near New Albany, Ind., outside Louisville, is seeking approval from the U.S. Bankruptcy Court to purchase the company's brand name, brewing equipment and delivery trucks.
If the sale is approved, which Mr. Heidrich expects to happen this month, Oldenberg's shareholders will no longer be part owners of a beer brewing company.
But Oldenberg will continue as a restaurant company that operates restaurants in Louisville and central Florida and has a license to open a third location in Augusta, Ga.
“The shareholders will ob viously continue to be stockholders in Oldenberg's restaurant company,” Mr. Heidrich said.
In 1996 Oldenberg sold 800,000 shares at $2.45 a share, raising almost $2 million. Mr. Heidrich said the shares are not actively traded.
“The sale won't solve all of our bankruptcy problems, but from a pure balance sheet standpoint we look much better than we did because we have retired a significant amount of our ($1.5 million) debt,” Mr. Heidrich said.
“We still have more to do. Does that mean we sell the restaurants? No, not necessarily,” he said. “We may seek an investment partner, restructure the debt or something like that.”
Mr. Heidrich said it is difficult to sell the company he has worked for since 1987 and owned since 1995.
“It was really hard back in June when we had to file (for (bankruptcy protection),” he said. “But actually, this is good because it's going to keep the company going.
“The new owners have endorsed Oldenberg beer. They believe in it, they want to promote it and they'll keep it going,” he said.
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