DETROIT (WXYZ) — The doors at Founders Brewing Co. are locked. The signs suggest it’s only temporary because of a power and AC issues.
However, the company has announced on social media that the Detroit taproom is closed for good.
That announcement came hours after an employee filed a lawsuit alleging racial discrimination.
The company said the Detroit taproom struggled following COVID-19 shutdowns and never fully regained foot traffic.
Meantime, the word is still spreading that the location is closed. Tuesday afternoon, 7 Action News saw people showing up looking for lunch and a beer. However, they were surprised to find the doors locked.
Zach, an employee of six months, also showed up. He said he learned of the closure on Monday as well.
“I’m just kind of disappointed about it. It kinda sucks," he told 7 Action News. “It’s definitely going to affect me financially for a little bit.”
He said he also learned of the lawsuit filed by manager Naeemah Dillard. Dillard, who is Black, is represented by attorney Jack Schulz.
In a statement, Schultz said that Dillard was promoted to manager but was “utilized merely for the optics of having a black manager while being treated completely different than her white counterparts.”
He claims she wasn’t given any actual managerial responsibilities and accuses Founders' leadership of allowing “white servers and bussers to essentially login at a higher pay rate to perform the duties which unfairly were denied to Ms. Dillard.”
An employee inside the establishment Tuesday afternoon came to the door and said "no comment" when asked about the closure and the lawsuit.
This is the second racial discrimination lawsuit filed by an employee against Founders Brewing at the Detroit location.
Tracy Evans, who is Black, filed it in 2018.
The brewery closed temporarily and underwent equity, diversity and inclusion training. That case was settled.
Statement from Founders Brewing Company on May 2, 2023:
"We are deeply saddened and concerned to learn of the recent accusations that have been brought against the Detroit Taproom. We take these claims very seriously, and we are conducting a thorough internal investigation.
"Since 2019, we have instituted mandatory bias, discrimination and harassment training throughout our organization. We have reexamined our policies and enacted new policies, along with implementing new procedures for the reporting of workplace concerns.Closing a business is a difficult decision, and this decision was made after a several year evaluation of the Detroit Taproom’s financial performance that began prior to COVID and was made worse by the pandemic. During the closure of our Detroit facility on Monday, we were unaware of the filing.
"We announced the closing to all of our Detroit staff on Monday morning, and did not learn about the lawsuit filed against Founders until that evening when a reporter contacted us. As with any closure, there was a lot of work that needed to be done to prepare for the loss of this extension, including redistribution of internal assets, conversations with our landlord and pulling together a comprehensive severance plan, all of which take time.As to the pending lawsuit, we are sorry that this individual did not have a good experience with us, and to the extent it was due to our actions or inactions that contributed to that, we are deeply sorry."
