NORFOLK, Va. (WAVY) — The Armed Forces Brewing Company’s tumultuous time in the Mermaid City is coming to an end, as its CEO said Thursday he would close the taproom and brewing facility and move it to another location, and that he planed to file criminal complaints “against some of the perpetrators” that he claims forced his hand.

“Because of the actions of a group of people with a woke agenda who continue to affect our ability to operate profitably in Norfolk, we have closed the taproom and brewing facility in Virginia and plan to relocate our business to a more pro-small business social and economic climate,” said Alan Beal, CEO of Armed Forces Brewing Company.

One customer told 10 On Your Side they were shocked to see it go, adding that they have seen more breweries close than pop-up in the recent years.

“When O’Connor closed down about a month after I moved in, it was nice that the Armed Forces came back. But, you know, I guess some reason didn’t work out here,” said Ricky Browell. “Same with River Beach moving away, so it’s kind of a bummer.”

In December 2023, Norfolk City Council approved a conditional use permit for the brewery, which took over the former O’Connor Brewing building on W. 24th Street in the Park Place neighborhood.

That approval had come after months of heavy pushback from the community, which had argued that the company’s messaging was divisive and bigoted, in particular, comments made by former Navy SEAL and company spokesperson Robert J. O’Neill, and that the brash military theme was a “cheap marketing ploy” and disrespectful to the region’s prolific military contingent.

Norfolk residents, elected officials and those in the craft beer industry said they were not thrilled by anti-LGBTQ+ rhetoric and other “divisive” messaging coming from the Armed Forces Brewing Company, which had announced its intention to locate in Norfolk in July 2023, just after O’Connor Brewing had announced that it was closing up shop at W. 24th Street after 13 years, with the military tribute brewer and veteran-owned and operated Armed Forces Brewing taking its place.

Beal said the company had chosen Norfolk for its large military and veteran community, and appreciated the support it did get in the region. The Norfolk location was Armed Forces Brewing’s flagship brewery and its first in Virginia.

Gov. Glenn Youngkin touted the brewery’s arrival in the Mermaid City, as a news release about the brewery noted that the Virginia Economic Development Partnership worked with the city of Norfolk and the Hampton Roads Alliance to secure the project for Virginia, with Norfolk winning out over locations in Florida and Maryland for the project.

The Virginia Economic Development Partnership came up with Project Seawolf, which offered Norfolk’s O’Connor Brewing for sale and more than $300,000 in tax incentives to Armed Forces Brewing, according to the Virginia Mercury, which itself cited reporting from the Fingers newsletter.

10 On Your Side reached out to veteran Del. Jackie Hope Glass, who originally praised the company’s arrival, and then hosted an event to hear the community’s concern for the business in July 2023. She said Virginians deserved answers. In a statement, she said the governor praised the company’s arrival in Norfolk, but said the company was not financially stable at that point.

Here’s the reality: Governor Youngkin championed this company’s relocation to Norfolk as an economic win, offering over $300,000 in tax incentives under Project Seawolf to secure the deal. But the company was already financially unstable before moving, and their recent filings confirm they’re sinking fast.

Armed Forces Brewing lost $1.7 million despite tripling revenue in the first half of 2024. By June 30, they were down to just $12,000 in cash. Multiple companies are suing them in Norfolk, Portsmouth, and Henrico for unpaid debts.

And now the big question, to your point, is: What happened to the $300,000 Virginia gave them?

— Does the state have a plan to recoup the money from this failing investment?
— What due diligence was done before offering these incentives to a company that was already hemorrhaging money?
— Why was this deal prioritized over supporting veteran-owned businesses that actually create jobs and contribute to our economy? 

The Governor gambled taxpayer dollars on a marketing stunt, a brewery that doesn’t actually brew beer, hoping to cash in on anti-Bud Light sentiment. Instead of securing a thriving business, Virginia subsidized a failing one, and the only return we’ve gotten so far is bad beer and unpaid bills.

So, I’d love to hear the Governor’s answer: What’s the plan now? Will he admit this was a shoddy investment or keep pretending this was a win for Virginia?

— Del. Jackie Hope Glass

The company had not replied by airtime Friday afternoon to a request for comment.

But after it opened its doors Jan. 27, 2024, Armed Forces Brewing lasted in Norfolk just over a year before Beal’s announcement Thursday.

“Unfortunately, our ability to profitably operate in Norfolk was severely affected by the local woke mob — a few individuals in the area who have no love for the traditional American values we hold as a company,” Beal said. “These people spread outright lies about our company, our employees and our shareholders before we even opened our doors. We unfortunately live in a world where getting called a ‘homophobe,’ ‘transphobe’ and ‘racist’ over and over by a small number of people can get amplified online making it difficult for a small business to overcome at the local level. The sad fact is that some people believe what they hear regardless how obviously false it is. The sadder fact is these people cost good people in Norfolk their jobs.”

When Armed Forces Brewing announced its arrival to Norfolk, the governor’s office noted it would create 47 new jobs and employ at least 70% of its workforce company-wide from U.S. military veterans.

Beal accused “the local woke mob” of spreading lies about the business and filing false complaints with local authorities, while also threatening local companies who worked with Armed Forces Brewing. He said in addition to filing criminal complaints in Virginia, they intend to help in prosecuting them.

“We fought back and will continue to do so, but the cumulative effect of their actions have made it impossible to profitably run the taproom from Norfolk,” Beal said. “As a result, the building and taproom will be put up for sale while we look for a new home and headquarters in a friendlier environment.”

Full statement from Armed Forces Brewing Company CEO Alan Beal on decision to close Norfolk location:

Because of the actions of a group of people with a woke agenda who continue to affect our ability to operate profitably in Norfolk, we have closed the taproom and brewing facility in Virginia and plan to relocate our business to a more pro-small business social and economic climate.

We are not closing Armed Forces Brewing Company. We are moving from the toxic environment these local individuals have created.

We had chosen Norfolk because of the large military and veteran community, and we are thankful to all who supported us in the market. We met and worked with some wonderful people here, and we especially thank the Hampton Roads military and veteran community for their patronage and support of our taproom and of the company in general.

Unfortunately, our ability to profitably operate in Norfolk was severely affected by the local woke mob – a few individuals in the area who have no love for the traditional American values we hold as a company. These people spread outright lies about our company, our employees and our shareholders before we even opened our doors. We unfortunately live in a world where getting called a “homophobe” “transphobe” and “racist” over and over by a small number of people can get amplified online making it difficult for a small business to overcome at the local level. The sad fact is that some people believe what they hear regardless how obviously false it is. The sadder fact is these people cost good people in Norfolk their jobs.

In our situation, these actions have been so egregious that we plan to file criminal complaints in Virginia against some of the perpetrators and intend to assist with prosecuting them.

To illustrate further the actions of these people, they initially attempted to prevent us from opening by spreading lies that were repeated in the local media and online. When that attempt failed and the city council granted us permits by a 6-1 vote to open over their objections, these individuals didn’t stop. They filed false complaints against us with local authorities. They started contacting local third parties we were doing business with and passed along their false epithets. They threatened to cancel local companies who worked with us if those companies did business with us. The shameless conduct of this group included spreading lies that caused a local charity to cancel a cooperative venture for us to feed local needy military families at Thanksgiving. They went so far as to report blatantly false information to the Inspector General of the U.S. Marine Corps in an attempt to prevent our partnership related to Toys for Tots. They continually interfered with our taproom business and continued to spread their false rhetoric.

We fought back and will continue to do so, but the cumulative effect of their actions have made it impossible to profitably run the taproom from Norfolk. As a result, the building and taproom will be put up for sale while we look for a new home and headquarters in a friendlier environment.