Brewerytown Beats to close permanently

North Philadelphia record shop Brewerytown Beats, which housed a catalog full of funk, hip-hop, and soul music and collectibles, will officially shut down operations by the end of the year.

The announcement was made on Friday on the Brewerytown Beats Instagram page. The organization posted an image of the store with the words “Brewerytown Beats closing for good by 2024″ over the photo.

The post’s second image was a snapshot of the Philadelphia Department of Licenses and Inspection’s Cease of Operations notification, which outlined zoning, electrical, fire, and license violations at the shop’s 1517 N. Bailey St. location. The notice also cited that any operations after 8 p.m. on Oct. 6 are illegal.

Currently, the store is not open for business. Owner Max Ochester says he will be out of the building by January 2024, but he is working to get approval from L&I to open Brewerytown Beats for the remainder of the year.

On Monday, Ochester told The Inquirer that there will be no “fire sale” of the store’s collection until approved by L&I, and the catalog will remain in the warehouse until then. He is currently not legally allowed to enter the building, he said.

The record store closes after eight years of operation, and three storefronts within the Brewerytown neighborhood. The first was at 29th Street. After a year, the shop moved to a main location on Girard Avenue, and later expanded to the warehouse on Bailey Street in 2020.

The shop posted a written statement on its website.

“First and foremost, I’d like to personally thank each and everyone of you who have come in the shop, supported from near and far, given words of encouragement and shown signs of support for this little mom & pop shop,” the statement reads. “Over the past eight years I have seen this place thrive, bring together tons of people in the best of ways and create a loving, caring, creative environment for all to enjoy.”

The statement points to the decision to move to the Bailey Street warehouse, which managed to squeeze the store’s collections and storage into the new space. However, funding for the new space was in limbo after accounting issues surfaced, which hindered the store’s business operations.

According to the statement, the record store secured an Economic Injury Disaster Loan (EIDL) loan, and plans to improve the warehouse’s heating and cooling system and other structural elements were in the works. But the Small Business Administration saw inconsistencies in the company’s business entity filings, the loan “timed out,” and funding was revoked.

“Through a bad accountant, and by not being careful with that kind of stuff, I ultimately shot myself in the foot,” Ochester told The Inquirer. Despite making efforts to meet with the IRS, and explain the dilemma, Ochester said, he ultimately lost out on nearly $125,000.

”It was kind of a comedy of errors, and it was really at a time when the world was going crazy,” he said. “I don’t know what to make of it, and I was trying to get some help. But every which way I turned, I couldn’t.”

The business was able to continue operations with other funding secured, but the L&I inspections hindered further business plans, according to the Instagram statement.

“For three years, we have struggled to make things work, having a few good months, but mostly having mediocre months, with little ‘extra’ money to buy new collections or pay rent or pretty much anything,” the statement noted. “Somehow for three years (it’s been a lot of borrowing, begging, and outside incomes: ie: label funds) we have ‘found’ money that has allowed us to continue on. But with this most recent L&I issue (that could be resolved with more money I don’t have) it just seems like a good time to put this thing to rest.”