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Bloomingfoods To Sell Elm Heights Spot, Not To Switchyard Brewery

By Lindsey Wright

Posted March 23, 2017

Bloomingfoods has reached an agreement to sell its Elm Heights store location, but not to the brewery it originally planned.

Switchyard Brewing Co. announced in January that it had entered into an agreement with Bloomingfoods for it to move into the vacant Elm Heights location. Bloomingfoods closed that store in May due to larger consolidation plans.

However, in an announcement released this week, Bloomingfoods revealed the Switchyard brewery will not be moving in to the space. But the press release did not disclose who the buyer is, stating that the purchaser is "still formulating plans."

"I can tell you that the person purchasing it is not interested in apartments," says Bloomingfoods General Manager Tony Alongi. "The building will be publicly available space, or will be accessible by the public."

Alongi says he expects residents will learn more about the plans for the space in 30 to 60 days.

He says Bloomingfoods wanted to either sell or lease the building, but preferred to sell.

"It's just better for Bloomingfoods to get out from underneath as much of the debt as we can," Alongi says. "Leasing was always an option for us, certainly getting a revenue stream out of the building would have been nice. But, it still would have left us with full debt and full payments on the debt."

Bloomingfoods officials said the Switchyard singed a letter of intent to lease the Elm Heights space.

"That agreement ran for 45 days and included contingencies, however, that agreement expired on February 19 2017," the release states. "At the expiry of that agreement, both parties discussed options to extend the terms of the Letter of Intent, however Switchyard's principles chose not to extend the agreement at that."

Switchyard Brewing Co. said in a Facebook post that it knew only as much as the public and was looking into details of the announcement.

"We want to reassure everyone that we are still on track to open and will not allow this to hinder our progress in bringing Switchyard to Bloomington!" the company said in the statement.

Before pursuing the Elm Heights property, Switchyard Brewing Co. originally planned to build a brewery along South Rogers Street, but those plans were scrapped in 2016.

Barbara Brosher contributed to this story.

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