Axle Brewing Co. in Ferndale plans to close June 30.

The craft brewery, which operates the Livernois Tap taproom and restaurant on 567 Livernois Ave., also distributes its beer in cans and on draft in metro Detroit and other parts of Michigan. Livernois Tap opened in June 2017 and was selected as one of the Free Press' Top 10 Best New Restaurants in 2018.

A "very, very rough" fall season, "a lot of headwinds on the distribution side" and last summer's road construction on Livernois contributed to financial challenges, Axle Brewing Co. President Dan Riley said. Last week, Livernois Tap served more than 1,500 people — which could be considered a healthy number — and its weekend revenue for its two-year anniversary and Pride Week is 20% more than last year, he said.

But that's not enough.

"We don't have the scale right now and the infrastructure and the cost structure to see a clear path to profitability in the near term," Riley said.

He's hoping to sell.

"Our goal is to secure a strategic partner or buyer that shares our values and interest in this vibrant community with the infrastructure and scale to succeed," according to a news release from the brewery titled, "Axle Brewing Co. announces Restructuring: Will scale back operations at the end of June."

What remains of the business operations will continue to honor distribution commitments such as making sure the Detroit City Football Club's events can continue serving Axle products, according to the release.

Riley said that while anything is possible — and he's hoping this public announcement ahead of time will help connect with opportunities — he planned to tell his staff members on Friday to expect to lose their jobs.

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"It's the hardest thing I've ever been through," Riley said. "... I feel like we've built something special. And I feel like, for a company who shares our values, with the infrastructure, it's an amazing opportunity."

A lot of breweries generally start with a taproom and begin increasing distribution as the brand awareness grows. Riley and his partners started Axle Brewing Co. by purchasing Milking It Productions and naming the brewery as a riff off of its AXL Pale Ale. The brewing operations in Royal Oak were later moved to the taproom in Ferndale.

"The biggest risk, honestly, was launching a craft brewing brand in 2015 without a physical taproom and without establishing a product and a consumer engagement prior to it," Riley said. "But it is what it is."

Initially, he said, Axle was distributing too widely without the brand awareness to support it.

"When the acquisition was made, I think we were looking in a little different marketplace than we're in right now," Riley said.

Between 2015 and 2018, the number of craft breweries in Michigan grew by 74%, from 205 to 357, according to the Brewers Association trade organization. For breweries that distribute, the growth has meant an increasingly crowded field of options among which to build a unique identity.

Riley declined to say how much he and his business partners has been invested. The Livernois Tap build-out in 2017 cost more than $2 million. He said they own the building, "don't have debt," and they're not filing for Chapter 11 bankruptcy protection.

The taproom location was a bold move: It's the only bar or restaurant on Livernois between 8 Mile and 9 Mile roads. It's nearly a mile from the city's bustling downtown area along 9 Mile.

But with Ferndale adding protected bike lanes and narrowing car traffic in 2018, it was anticipated that Livernois Tap would be the first of multiple openings just north of Detroit's historic Avenue of Fashion, a historic business area of Livernois that's undergoing developments and improvements. In the past year, not much else has changed on the Ferndale side.

And the construction didn't make accessing Livernois Tap — which already has a small parking lot — any easier.

"Without question, it was pretty crippling," Riley said. "That five and a half months was really, really rough. But I will say I don't begrudge the city. Things have to happen, and they had a federal grant. And the City of Ferndale jumped through hoops to provide us with support: valet, Lyft codes ... We did everything we could."

Mayor Dave Coulter said Friday that Riley has embraced the city's goals for Livernois and that city staff will do what they can to help for a successful transition.

"In two short years, Dan has become an integral part of the community and so respected," Coulter said. "He was more than just a business or a brewery. He was a community partner in many ways, and the community will take this hard."

He said Riley was also integral to redeveloping the corridor.

"He invested in an obsolete building when others weren't interested in that location," Coulter said.

Livernois Tap's 10,000 square-foot building was formerly a diamond-drilling shop. The design updates were inspired in part by European beer halls. Along the south wall is a long, oak-topped bar that includes 30 seats in addition to seating for about 75 at tables. There's also an outdoor patio/biergarten with a fireplace.

Axle's 2018 Wolf Tone Bourbon Barrel Aged Imperial Stout (11.5% alcohol by volume) release was one of the Spirits of Detroit top 5 new Michigan beers of 2018. In what appear to be the brewery's last days, Axle is planning an event to release its 2019 Wolf Tone, among other festivities.

"I don’t want this to end or transition with a whisper when we came in with a scream," Riley said.

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Spirits of Detroit columnist Robert Allen covers craft alcohol for the Free Press. Contact him: rallen@freepress.com and on Untappd, raDetroit and Twitter, @rallenMI and @SpiritsofDET.