Skip to Content
Featured

Border X Asked To Pay Almost $100,000 In Rent In ‘3 Day Or Quit’ Notice From Landlord, Beer Thug Taking Over

Last week, Border X Los Angeles posted an update on Instagram stating that they were closed due to a "legal situation with an illegal tenant." Edgar Preciado, the founder of Beer Thug Brewing Co. and only other tenant in the shared brewery has provided a statement addressing the situation.

Update on 9/5/2023: L.A. TACO has confirmed that Border X has vacated the building where they operated since 2019. Edgar Preciado sent a photo of the eviction notice made out to Border X Brewing, LLC. last week. He informs L.A. TACO that he remains open and is in negotiations to take over the lease "for the long run." L.A. TACO reached out to David Favela for comment via email and did not hear back.


Originally published on August 2, 2023.

Despite making a public plea for investors in March, Border X’s Los Angeles location is now “temporarily closed” in the City of Bell, while Beer Thug Brewing Co., the brewery-within-a-brewery that once shared this space, remains open. 

Owner David Favela posted the news last Thursday on the brewery’s Instagram account. The post, which currently has its comments section turned off, states: 

“Border X Brewing will be temporarily closed as we work on the legal situation with illegal tenant. During this time we will rethink, reinvent and remodel…we’ll be back stronger. Thank you all for your patience and support… ”     

Favela’s vague statement, stopping short of naming the “illegal tenant,” led many loyal supporters of their pioneering, Latino-owned beer to understand that he was talking about Edgar Preciado, the founder of Beer Thug Brewing. That’s because Preciado is the only tenant who shares the beer tanks at the brewery. 

Before writing this post, Favela had posted a now-deleted video of himself above the following caption.

My father taught me to believe in people, to give them a chance to succeed in life because when you do, it ripples through the persons family and community. I have worked in education with migrant school children, I've taught SAT courses to high schoolers and I work at UCSD helping grow the number of latino, African American, female and veteran business founders. Even as CEO of Border X, my greatest pride is what we accomplished together in Barrio Logan and establishing the first, all Latina, craft Brewery called Mujeres Brew House. Edgar was suppose to be a story of redemption, if someone making good in their life despite mistakes made earlier. I was a believer in people, now I live in hell, hostage to a gang of thugs squatting in my brewery that I spent my life savings.

Meanwhile, Preciado operated his business at the space as usual through the weekend, going as far as posting a video of Sunday’s packed house. 

L.A. TACO reached out to David Favela via the general Border X info and his personal email for comment on the situation. Favela responded but did not want to go on record. 

L.A. TACO also reached out to Preciado, who sent the following statement:    

I was thrilled when David Favela asked us to join his Border X Brewing location in Bell via an alternating proprietorship to help boost sales and garner overall interest in the brewery. Since joining the brewing industry after serving time in prison, I wanted to give back to the community one beer at a time. 

We admired David’s intention of having two Latino breweries operating within a single location, accepted his offer, and opened in November of 2022. The community embraced us with open arms. We hosted many events and, in a short amount of time, found success. Over time, however, we noticed operational difficulties on Border X Brewing’s side and were unaware of the state of their brewery. 

Additionally, the unfounded constraints David attempted to place on our business, despite operating as separate entities, and the attempts to unilaterally change our arrangement without our input, created a strain on our business relationship. Growing hostility, resentment, and unprofessionalism made it difficult for the Beer Thug Brewing team to operate within the Bell location comfortably and securely. As a humble team that is trying to operate a legitimate business owned by a formerly incarcerated, now–respected man in the craft beer community, the treatment we have endured from David has caused us to retain legal representation. 

While we are unable to disclose the details of our lawsuit, we are confident in our legal strategy and our supportive team. We are discussing our options moving forward but intend to stay open until further notice. As of July 28, Border X Brewing has ceased operations, and we will remain at Bell until our contract ends or we transition to a new chapter.

Preciado also confirmed to L.A. TACO that they are currently securing a long-term lease at the space and considering his other options for moving to another location. For now, Beer Thug Brewing Co. is open Sunday to Thursday from 5 PM to 10 PM and until midnight.

L.A. TACO will update this story as it develops.  

Stay in touch

Sign up for our free newsletter

More from L.A. TACO

What To Eat In L.A. This Weekend: Parisian Hot Dogs, Steak-Stuffed Eggrolls, and a New Nicaraguan Fritanga

Plus a beautiful shawarma sandwich in Sherman Oaks and a weekend-long celebration of a Chicano brewery in La Puente.

July 26, 2024

Street Vendors Successfully Sue City to Remove Illegal ‘No Vending’ Signs And Won

L.A. will also have to reimburse the street vendors for their past fines relating to this controversial sign. However, this does not include any other fines related to equipment restrictions or lack of permits. This also means that while a vendor can’t be cited for vending in areas like the Hollywood Walk of Fame anymore, they can still get cited for other city regulations. 

July 25, 2024

Empathy Through Tacos: Meet the Skid Row Taqueros Giving Away Free Food Every Friday to Downtown’s Homeless Community 

One of the taqueros who organizes the weekly pop-ups used to be homeless himself and broke out of poverty by selling breakfast burritos in front of a courthouse in Van Nuys. Now, he is sober and pays it forward every week. The group uses TikTok to raise funds and donate up to 1,500 tacos and more a week.

July 24, 2024

Open Thread: What’s The Best Live Show You’ve Ever Seen In L.A.?

Was your life changed by a Circle Jerks show at Blackie's? Chaka Khan dropping in on Snoop and Too Short at the Palladium? Dudamel with a special guest at Disney Hall? Chime in!

See all posts