GM at Craft Brewery Accused of Spending $1 Million Without Owner’s Knowledge
The former general manager at the Colorado-based Joyride Brewing allegedly misappropriated over $1 million in company funds, which resulted in the company filing Chapter 11 proceedings. (Photo: AP Photo/Robert F. Bukaty)
On Wednesday, Law360 reported that a Colorado brewery in the midst of Chapter 11 proceedings filed a lawsuit against one of its former employees. Joyride Brewing claims its former general manager, Grant Babb, misappropriated over $1 million of business funds for his own personal use and cites Babb’s alleged spending spree as the reason why the company is filing for bankruptcy.
Joyride claims Babb, who has a 20% ownership interest in the company, used company funds to pay for his partially-owned brewing businesses Live Slow Brewing Company LLC and Hermans Legacy LLC. According to Law 360, Babb was accused of costing Joyride nearly $420,000 in “new and unauthorized debt.”
The outlet reports that in 2022, Babb apparently wrote unauthorized checks and made multiple transactions to fund his other beer businesses behind the brewing company’s back.
Joyride filed for Chapter 11 relief on Nov. 11, the same day Dave Bergen, the brewery’s co-founder and president, posted a video claiming Babb was responsible.
“This has nothing to do with Joyride’s ability to run a successful or profitable business, but rather has everything to do with the improper and unauthorized spending, as well as financial mismanagement of that former manager,” Bergen claimed, according to Law 360.
In October, Babb resigned as general manager and managing member of Joyride Brewing. Despite parting ways with the company, Babb still retains his 20% ownership interest in Joyride.
Word of the allegations against Babb has led to some professional repercussions for the ex-Joyride GM. Law360 reported that Babb was let go from his position as a manager and employee at Live Slow Brewing.
“Until quite recently, Live Slow was unaware of Mr. Babb’s actions regarding the transfer or exchange of funds between Live Slow and Joyride,” Live Slow said in a statement, per Law 360. “After recently discovering that Mr. Babb misused some of Live Slow’s funds, Live Slow removed him as a manager and an employee. The actions Mr. Babb appears to have taken were neither condoned nor approved by Live Slow and instead were unilateral decisions made by him and him alone.”
Though Live Slow terminated its professional dealings with Babb, it appears Babb is still working with the other business, Hermans Legacy. Joyride accused Hermans Legacy of being aware that Babb apparently stole money from the brewery, and claims the business has refused to return it. The lawsuit additionally names Hermans Legacy as a party.
Joyride intends to remain open through the Chapter 11 proceedings.
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