PITTSBURGH FOOD & BEVERAGE

Case Highlights

• Provided interim crisis management upon a financial fraud being uncovered
• Worked with lender to sort out business issues while investigations were pending

Case Narrative

Pittsburgh Brewing Company brewed Iron City Beer products and brewed and bottled numerous products on a contract basis for small micro or craft breweries.  During the early 1990s Pittsburgh Brewing was one of the largest contract brewers of Samuel Adams beer and the company had a full-service operation for raw material procurement, brewing, bottling, storage and distribution of beer products for the Eastern portion of the United States.

The businesses experienced sudden and severe distress upon the discovery of a financial fraud at the corporate level.  DSI was appointed as Receiver of this holding company that owned and operated the Pittsburgh Brewing Company, D.L. Clark Company, Wayne Candies, Inc. and L.E. Smith Glass Company, all located in the Pittsburgh area.  The receiver took control of the day-to-day operations of the three businesses and managed a workout with the companies’ secured lender.  During the receiver’s tenure, members of DSI assisted in crisis management at the brewery, maintained strategic relations with the Samuel Adams organization and strategized options for the ultimate sale of the brewery and the candy companies.