Central City Brewers and Distillers Ltd. and CCBD Realty Holding Corp., CCAA

Central City Brewers and Distillers Ltd., a Surrey, British Columbia-based brewer and distiller, and CCBD Realty Holding Corp., which owns the real estate housing Central City’s operations, obtained CCAA protection on November 21.

The companies list approximately $63.2 million in liabilities, including approximately $23.7 million to CWB and $28.3 million to BDC.

Central City started as a brewpub in 2003 and grew to having over 200 employees at its height before the COVID-19 pandemic. Its beers, including well-known brands Red Racer, Beer League Lager and Street Legal Dealcoholized Craft beer, are sold in liquor stores and served in pubs, restaurants and bars across the country.

Shortly prior to the pandemic, the companies invested $45 million in capital expenditures into a new building and state-of-the-art brewing and distilling equipment. Given the business closures and economic upheaval of the pandemic, the companies were unable to realize a return on that capital expenditure.

In 2021, Central City went offside its financial covenants. It has made several business improvements and cost reductions over a subsequent forbearance period with the banks, but is still unable to service its debt load.

The purpose of the CCAA proceedings is to conduct a SISP.

PwC is the monitor.

Counsel is Farris for the companies.