New Belgium buys bankrupt SF brewery

Slower than forecast development in San Francisco’s Dogpatch neighborhood and delays in the construction of a new pub there led to the bankruptcy and subsequent purchase of a San Francisco brewery.

Magnolia Brewery Company has agreed to be purchased by Fort Collins, Colorado’s New Belgium Brewing Group as part bankruptcy proceedings.

┬áMagnolia Brewing Company founder Dave McLean opened his first location in 1997 in San Francisco’s Haight-Ashbury neighborhood.

The pub served tourists and residents with artisanal food and English-style beers brewed in the basement.

In 2014, McLean opened a barbeque restaurant and brewery named Smokestack in Dogpatch but his company floundered financially the following year because of the construction delays and slower the expected development.

In November 2015, officials with Magnolia Brewing Company filed for bankruptcy. McLean will stay on with the new company as an employee.

Officials with New Belgium Brewing Group plan to operate both Magnolia Brewing Company’s locations with existing staff and beer brands.

The officials also plan to start the world’s first lambic blendery outside Belgium.

Lambic, or spontaneously fermented beers, are among the world’s rarest. Lambic beers are fermented with wild, airborne yeast. The brewers do not add any yeast.

So far, Lambics have only come from the Senne River valley, near Brussels.

New Belgium Brewing Group is expected to be complete its purchase next month.