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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.

12:00 PM PDT on September 5, 2023

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.  

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