Months after a tangle of legal disputes and the ultimate closure of popular Long Beach distillery Portuguese Bend, the company has filed for bankruptcy and is in the process of selling its Downtown location to Smoke and Fire, LLC, the company behind Villains Brewing Co. in Anaheim and Smoke and Fire Social Eatery.

Portuguese Bend filed for Chapter 11 bankruptcy on Aug. 23 citing financial problems caused by the COVID-19 pandemic, disputes with the building’s landlord and legal battles between its largest shareholders, Simon Haxton and Brenda Rivera, according to court documents.

Voluntary Chapter 11 filings allow businesses to resolve financial shortcomings through a reorganization plan and are initiated by the debtor, in this case, Haxton.

Unsecured claims from creditors, including Haxton citing his own lost wages valued at over $270,000, total over $560,000, the filing states. The business’ assets total just $468,000 and include $22,000 in cash, $62,500 in intangibles and intellectual property and over $350,000 in equipment, the filing shows.

The filing also shows that prior to its closure, the distillery brought in significant revenue, garnering just over $1.4 million in 2021 and $1.3 million in 2022, but that number sunk to $60,000 in 2023. The restaurant closed that year after operating for only a few weeks.

Smoke and Fire, the company behind the recently opened Villains Brewing Co. in Anaheim, was founded by Isaias Hernandez with partners Josh Bentrem and Juan Hernandez. Smoke and Fire, which has locations in La Habra, Pomona, Paramount and more, serves classic barbecue items like smoked beef brisket and fusion dishes like brisket quesadilla and brisket tacos.

Villains Brewing Co. recently won a bronze award at the Great American Beer Festival in the American-style lager category.

The sale could be finalized at a court hearing later this month. A representative for Smoke and Fire declined to discuss plans for the location while the bankruptcy process is still unfolding.

An attorney for Haxton did not respond to a request for comment by the time of publication.

The legal dispute between Haxton and Rivera is ongoing, with accusations that the business was mismanaged, including that Haxton improperly loaded the company with $218,000 in debt to pay himself a back salary. One investor, Quatro Urbanos LLC, has also filed a lawsuit that remains ongoing, trying to recoup a nearly $100,000 investment.