Owner of Arkansas brewer sues the others

FILE PHOTO: NWA Democrat-Gazette/JASON IVESTER Bike Rack Brewing
FILE PHOTO: NWA Democrat-Gazette/JASON IVESTER Bike Rack Brewing

One of the owners of Bike Rack Brewing Co. is suing his cohorts, contending he's been improperly frozen out of company business and was given a lowball offer for his stake in the company.

Steven Outain, a company founder with a 17 percent share in Bentonville's Bike Rack filed suit in Benton County Circuit Court late last week contending his relationship with the other owners has deteriorated. In the suit, Outain asks, among other things, that the court determine the worth of his share of the company, rule that he can't be forced out and award compensatory and punitive damages.

Jeff Charlson, the majority owner of Bike Rack who often acts as a company spokesman, declined to comment on the suit.

Bike Rack opened its brewery and taproom in Bentonville in 2014, added a second location in Bentonville in 2017 and has plans to open a third location in downtown Springdale. The company's annual revenue was more than $800,000 according to the suit.

According to the filing, in January the other owners threatened Outain with lawsuits and demanded he voluntarily relinquish his ownership interest in the company but later dropped the demand and instead offered to buy him out for $33,500, an offer Outain rejected.

The other owners then elected to pursue a "call right," which under the company's operating agreement allows for a majority of members to buy out shares from any member at fair market value. Outain's suit contends an independent appraiser who valued the total worth of Bike Rack at $105,900 and his share at $18,003 was improperly influenced by the other owners.

Charlson has a 45 percent stake in the brewery; Andy Neilsen holds 14 percent; Joey Lange controls 9 percent; while Jeff Amerine, Phyllis Amerine and Rickey Draehn, all own 5 percent of the company, according to court documents.

In 2017 Bike Rack produced 1,488 barrels of beer, about 4 percent of Arkansas' total beer production and up from 579 barrels in 2016, according to data from the state's Alcoholic Beverage Control Division. A barrel of beer contains 31 gallons.

Business on 09/19/2018

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