Del Papa considering mainland site

Beer buzz: Officials are confirming sobering speculation that Del Papa Distributing Co., with offices and warehouses at 6702 Broadway on the island, is considering a move to the mainland. But Mike McAfee, vice president of marketing for Del Papa, said it’s far too early to talk about sites or specifics.

“Nothing has been finalized,” McAfee said.

Del Papa, which is celebrating 100 years, began on the island when immigrant Omero Del Papa converted a small grocery store into a wholesale business. But few locals realize Del Papa, an exclusive distributor of Anheuser-Busch products in 17 counties, has offices, warehouses and executives in other Texas cities, including Victoria. The company constantly evaluates its locations and warehouses to see how efficiency can be improved, McAfee said.

“We’re always looking at ways we can develop our ability to take care of our customers,” McAfee said.

Del Papa supplies every restaurant, bar, hotel and other retailer with Anheuser-Busch products in the counties where it is an exclusive distributor.

Rumors have it that Del Papa is scouting sites in Friendswood. But moving plans are so conceptual, the company hasn’t chosen a site, McAfee said. Whether Del Papa would open a warehouse on the mainland or move its entire island operation to the mainland is undecided, officials said

Still, a warehouse near the proposed Grand Parkway, a major east-west running freeway, would allow trucks to easily service both Galveston and Brazoria counties and might make a mainland operation ideal, McAfee said.

Altogether, Del Papa employs about 350 people, with 150 employees on the island. Stay tuned.

Business as usual: It’s true the word “bankruptcy” doesn’t have a nice ring to it. But for businesses, it doesn’t always mean the end is near. Two mainland companies that are reorganizing under Chapter 11 bankruptcy protection want everyone to know their doors still are open.

In late January, the developer of Harborwalk filed for Chapter 11 reorganization as it battles with its lender about a $30 million note. The project includes 380 lots, a 150-slip marina and yacht club all 2.4 miles west of Interstate 45 on state Highway 6 in Hitchcock.

Harborwalk officials said they have not defaulted on any provision of the note.

The Chapter 11 news caused some to think that some businesses at Harborwalk weren’t open, which isn’t true. The Ships Store and fuel dock, which sell gasoline and diesel, sundry items, bait, ice, apparel, marine batteries, boating gear and more, are open. There’s also a deli within the Harborwalk Ships Store. For information, call 409-935-3737.

Also, for yacht club members, the pool and the Tiki Bar’s regular season opens this weekend.

Unlike Chapter 7, which usually leads to liquidation of a company, Chapter 11 frees a company from the threat of creditors’ lawsuits while it reorganizes its finances. Unless the court rules otherwise, the debtor remains in control of the business and its assets under Chapter 11 reorganization. In Chapter 11, the debtor’s plan must be accepted by a majority of its creditors.

Another Chapter: Meanwhile operators of the Mall of the Mainland said the Texas City shopping center, 10000 Emmett F. Lowry Expressway, still is open and is not closing after it filed for Chapter 11 bankruptcy protection late last month to ward off foreclosure.

Michael Makabeh, a principal of Brentwood Group No. 1, which bought the mall in 2007, said he’s working with willing investors for financing. Makabeh confirmed Monday that Brentwood Group filed Chapter 11 to avoid foreclosure by bank Pacific Western.

The group is attempting to resolve issues with Pacific Western, a bank to which Brentwood owes $13.5 million, Makabeh said.

In the unlikely event the mall reverts to the bank, it still doesn’t mean the shopping center would close, he said. The property is valuable for the rents it generates by leasing space to tenants.

More than 400 people are employed at stores in the mall. Many tenants have renewed their leases and are committed to the shopping center, Makabeh said.

“The mall is not just going to disappear,” he said. Stay tuned.