Tattersall Distilling blames hacked payment system for alleged $120K in missing rent

In an eviction hearing Wednesday about alleged unpaid rent, Tattersall Distilling claimed it actually had paid its northeast Minneapolis landlord the past five months of expenses and blamed the payment system for the missing money, totaling more than $100,000.

"It appears that our landlord's IT system was hacked and caused issues for the landlord in receiving our payment," Tattersall co-founder Jon Kreidler said in an email Wednesday. "We are working with authorities to attempt straightening things out and getting the dispute resolved."

Mark Thieroff, an attorney for landlord JGS Management, argued the popular distillery still owed the sum.

"I'm not convinced we have a relevant factual issue," he told Hennepin County District Judge Christian Sande on Wednesday afternoon.

JGS Management filed the eviction case on Jan. 9 against Tattersall Cos. alleging that as of Jan. 5, the distillery hadn't paid $121,717.64 in rent, real estate taxes, late fees and other monthly expenses since August.

JGS and Tattersall initially entered a lease agreement for the 8,824-square-foot space at 1620 Central Av. NE. on Dec. 31, 2014. They signed another lease on June 23, 2016, for 5,494 more square feet, the complaint said. The garage-like warehouse encompasses the back of the building and houses the distillery and a craft cocktail room with some outdoor seating.

JGS Management asked in the complaint for Tattersall to remove its property from the site and to restrain from "committing any waste" on the premises. The landlord, which also has an office at the same location, wants Tattersall to cover the costs and legal fees as well as any relief the court deems warranted.

Christopher Renz, Tattersall's attorney, told the judge Wednesday the company had been reluctant to pay January's rent given the disappearance of the other payments. Renz told the judge that he had a check for January rent and other expenses that he could give the landlord's attorneys this week.

Sande granted Renz' request for more time to research the matter as long as Tattersall pays its January rent and meets other lease terms. The eviction case could go to a court trial in March.

Tattersall debuted at the Northeast location in 2015 and then opened a new Wisconsin facility in 2021, complete with a restaurant. The northeast Minneapolis-based company then shifted most production to the new "destination distillery" in River Falls that year. The restaurant, which St. Paul-based Morrissey Hospitality operates, was a first for Tattersall.

The distillery's founders said the maze of liquor laws in Minnesota led them to look to Wisconsin for expansion because of more relaxed restrictions on liquor production.

Tattersall has also opened the Cocktail Room at 18th and Central at Minneapolis-St. Paul International Airport.

Co-founder Dan Oskey became a well-known Twin Cities bartender after stints at Strip Club Meat & Fish and Hola Arepa before launching Tattersall with childhood friend Kreidler, who holds an MBA from the University of Chicago, according to the company's website.