By Miriam Raftery
October 27, 2012 (El Cajon) – The El Cajon Brewing Company has filed for Chapter 11 bankruptcy, but the owner says the restaurant aims to reorganize and stay in business.
The brewery has received at least $645,000 in funds from the City of El Cajon, including $300,000 in start-up funds approximately three years ago, followed by a $345,000 loan borrowed from redevelopment funds to complete the renovation, the U-T San Diego reported in April 2011.
Asked what the bankruptcy could mean for the city, Councilman Gary Kendrick told ECM, “This is a bankruptcy reorganization, so hopefully they will be able to reorganize their debt and continue operation or find another operator. The city has a lien on their equipment as security for the loan. The value of the equipment would cover a significant part of the unpaid loan balance.”