Deep Ellum founder fired by CANarchy after filing lawsuit

LONGMONT — Former Deep Ellum Brewing Co. CEO John Reardon says he was terminated from the CANarchy collective weeks after he filed suit alleging the group’s ownership had sabotaged the Dallas brewery’s sales.

In a Facebook post, Reardon said he wasn’t surprised by the decision by CANarchy as he alleged the company was failing to honor other commitments it made to him.

Reardon went on to say that CANarchy had placed the brewery on a slow death spiral since he sold it in 2018.

SPONSORED CONTENT

How Platte River Power Authority is accelerating its energy transition

Platte River Power Authority, the community-owned wholesale electricity provider for Northern Colorado, has a history of bold initiatives.

“Just over 2 years later, the brand is a shadow of itself, the beers have changed, quality has gone down the drain (literally), and the culture that I cultivated (my most coveted accomplishment) has been completely dismantled,” he wrote.

Reardon filed suit against CANarchy and its private equity partner Fireman Capital Partners LLC this month in Delaware Chancery Court. The wide-ranging complaint alleges CANarchy and Fireman Capital have never paid Reardon initial sales fees for the acquisition and are intentionally preventing sales growth at the brewery to avoid an earn-out clause that would give Reardon a portion of the revenues.

The complaint specifically alleges CANarchy reneged on its promise to grow Deep Ellum’s presence outside of Texas, reduced the brewery’s operational resources to the point where it couldn’t fulfill orders and sidelined Reardon from day-to-day operations.

CANarchy is the collective founded in 2015 by Oskar Blues founder Dale Katechis with the financial backing of Boston-based private equity firm Fireman Capital Partners LLC.

It counts Oskar Blues, Tampa Bay’s Cigar City Brewing, Salt Lake City’s Wasatch Brewing, Michigan’s Perrin Brewing Co., California’s Three Weavers Brewing Co., Squatters Pubs and Beers and Deep Ellum Brewing among its roster.

In an emailed statement, a CANarchy spokesperson said the company is working with Reardon to address the issue but declined to comment further on personnel matters.

© 2020 BizWest Media LLC