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During a week in which it closed two brewing facilities, Green Flash brewery has been purchased by a new investor group. The company’s principal lender foreclosed on the San Diego brewery, then sold it to a group of investors called WC IPA LLC.

The announcement of the sale comes just a week after Green Flash closed its Virginia Beach brewery 16 months after opening the East Coast operation. Only a few days later it closed it Poway barrel-aging facility, Cellar 3.

Former Green Flash Brewing Company CEO Mike Hinkley will continue to be part of the leadership team of the new company.

“After a general slowdown in the craft beer industry, coupled with intense competition and a slowdown of our business, we could not service the debt that we took on to build the Virginia Beach brewery, and in early 2018, the Company defaulted on its loans with Comerica Bank,” Hinkley wrote in a note to Green Flash shareholders. “While we took substantial efforts to recapitalize the Company over the past several months, both before and after the bank default, we were ultimately unable to close a transaction.”

A press release stated the Green Flash and Alpine breweries will continue to operate in San Diego and Alpine, respectively. But Green Flash Brewing Company and Alpine Beer, which Green Flash purchased in 2014, will be dissolved.

The number of operating breweries in the United States grew 16% in 2017 and smaller breweries generally fared better than large ones. Total beer sales declined 1% for the year, while craft (as defined by the Brewers Association) beer sales grew 5%. Microbreweries, meaning ones that made 15,000 barrels or less, and brewpubs delivered 76% of craft growth.

“Growth for the craft brewing industry is adapting to the new realities of a mature market landscape,” Brewers Association economist Bart Watson said in a press release announcing the 2017 statistics. “Beer lovers are trending toward supporting their local small and independent community craft breweries. At the same time, as distribution channels experience increased competition and challenges, craft brewer performance was more mixed than in recent years, with those relying on the broadest distribution facing the most pressure.”

Small and independent breweries account for 98% of the breweries in operation. They exemplify what has become known as “the long tail.” In fact, the smallest 75% of breweries make less than 1% of the beer.

“Beer lovers want to support businesses that align with their values and are having a positive impact on their local communities and our larger society,” added Watson. “That’s what small and independent craft brewers are all about. The ability to seek beers from small and independent producers matters.”

Craft breweries produced 25.4 million barrels in 2017 and the value of retail sales grew 8% to and estimated $26.0 billion, representing 23.4% market share.

Breweries continue to open at a faster rate than the market is growing, with 997 new one operating in 2017. About 2.6%, or 165, of breweries closed, but Watson warned that number may increase along with growing competition. “It’s hard to know what a long term rate may be,” he said in a conference call.

Fuller Smith & Turner — the oldest brewery in London and operator of an international brand — has purchased Dark Star Brewing in Sussex. Terms of the sale were not revealed.

“The deal means we will continue to do what we do, but gives us huge opportunities to brew more one-off small batch beers hand-in-hand with exploring the export market and expanded bottle and can formats,” said Dark Star managing director James Cuthbertson.

This follows Fuller’s acquisition of cider makers Cornish Orchards in 2013 and George Gale & Co. in November 2005. Fuller’s managing director Simon Dodd said the acquisition was part of the same strategy.

He said the company had “been looking at similar opportunities to invest in and work with young, exciting companies that have a similar ethos and commitment to quality as Fuller’s.”