‘None of us were told’: Rehoboth Starbucks and Iron Hill Restaurant staff blindsided by closures

REHOBOTH BEACH, Del. Two well-known names in Rehoboth Beach’s food and beverage scene Iron Hill Brewery & Restaurant is now closed and the Starbucks at 301 Rehoboth Ave. are planning to close Saturday according to employees.

Iron Hill Brewery, a Mid-Atlantic chain known for its craft beer and made-from-scratch food, announced Thursday morning that all of its locations were shutting down permanently. The company posted a statement on Facebook thanking customers for their loyalty and support over the years.

"After many wonderful years serving our communities, all Iron Hill locations have closed," the company wrote. "It has been our pleasure to serve you, and we are deeply grateful for your support, friendship, and loyalty over the years."

No specific reason for the closures was provided, although the company suggested it hoped to return in the future. The Iron Hill website and all location listings have since been taken offline.

Employees at the Rehoboth Beach location said they received no advance notice. Karen Perez Alvarez, a server and food runner at the Rehoboth location for just over a year, said even restaurant managers were unaware of the shutdown.

"None of us were told ahead of time. Not even our managers knew," Perez Alvarez said. "We were all in shock when the Newark location closed. Then we had a little scare ourselves, and now it’s like wow, okay. It really was us next."

She said staff had developed a close-knit bond over time, making the sudden closure even more painful.

"It’s definitely a sad moment," she said. "It’s like saying goodbye at a family reunion, really. Everyone was like a family. I loved my coworkers."

Perez Alvarez said employees were told internally that the company was filing for bankruptcy, though Iron Hill has not confirmed that publicly. "It’s pretty sad how it all went down," she said. "A lot of people really depended on this job."

"I just hope that, in the end, the company doesn’t disappear completely," she added. "I want people to be able to remember Iron Hill in a good way as a fun restaurant." said Perez Alvarez 

The Delaware Restaurant Association called Iron Hill’s closure "the loss of an institution," warning that if a private-equity-backed company with decades of brand recognition can’t survive in the current business climate, smaller independent restaurants may be in even greater jeopardy.

Just down Coastal Highway, employees at the Starbucks on Rehoboth Avenue tell CoastTV they learned Thursday that their store was also closing, part of a broader corporate restructuring.

Juliana Reyes, a barista at the Rehoboth location, said the news came with almost no warning.

"Literally yesterday. It was genuinely sudden," Reyes said. "You're in a lot of shock. You don't know how to really prepare for it. No one really knows what to do next."

She said the impact extended beyond just employees. "It's taking more than just workers," she said. "It's communities who have a hub, a little space to gather.  It almost feels selfish to both workers and customers."

Reyes says Saturday is the last day for the Rehoboth Avenue Starbucks.

According to the Associated Press, Starbucks is closing potentially thousands of stores across North America and Europe and cutting about 900 nonretail jobs. The company said it is shuttering locations that no longer meet expectations for customer experience or financial performance.

Starbucks has not released a full list of affected stores but said closures will be reflected in its mobile app. The company expects to finish its fiscal year Sunday with approximately 18,300 North American locations, down from 18,734 in June.