Sea Dog bought by Shipyard partners - Weekly Specialty Beer Report - the U.S. Bankruptcy Court has approved an offer for Sea Dog Brewing Co.'s pubs in Bangor, Camden, and Topsham

Modern Brewery Age, Dec 23, 2002

The taps at Sea Dog Brewing Co.'s pubs in Bangor, Camden and Topsham could be flowing early next year, now that the U.S. Bankruptcy Court has approved a nearly $1.2 million offer for the company. Judge Louis Kornreich last week approved the offer by Sea Dog Ventures Inc., whose principal investors are Shipyard Brewing Co. founder Fred Forsley and brew master Alan Pugsley.

Pugsley has had a business arrangement with Sea Dog for three years, bottling and distributing Sea Dog products from Shipyard's brewery in Portland, Forsley said.

"We're essentially doing this to preserve and build the Sea Dog brand," Forsley said. "The bottling operation has been very successful. We don't want to lose what we've invested in the bottling side."

Sea Dog's beers and ales were distributed in nine states including Florida and California, according to information on that company's Web site; Forsley said Shipyard soon would be sold in 20 states.

Forsley, a real estate consultant, teamed up with Pugsley in 1992 to open Federal Jack's Brew Pub and the Shipyard Brewing Co. on the Kennebunk River.

Shipyard quickly outgrew the site and, in 1994, the company moved to Portland, The brewery has expanded three times since its opening and increased its capacity from 18,000 to 85,000 barrels. Shipyard also operates pubs at the Sunday River and Sugarloaf USA ski resorts in western Maine.

Sea Dog Brewing Co. was founded in 1993 in Camden. It opened a Bangor facility in 1995 and the Topsham pub two years ago. Last week, Kornreich approved a motion to expedite the sale and scheduled the final hearing.

Sea Dog Ventures offered $1,194,100 for the three restaurant leases and company assets, according to court documents. That's $50,000 more than the company owes its creditors, bankruptcy trustee Pasquale "Pat" Perrino Jr. said last week.

Perrino said there had been no other offers for the company.

Sea Dog Brewing filed for Chapter 11 bankruptcy in November 2000 and the court approved a reorganization plan the following August.

The brewery and restaurants shut down operations after the company's request to lower its debt to its primary creditor was denied. It then filed for Chapter 7 bankruptcy, paving the way for liquidation of the business's assets.