BOSTON (CBS/AP) – A major sponsor has pulled out of the St. Patrick’s Day parade in South Boston.

Boston Beer Company, the makers of Sam Adams beer, released a statement Friday morning saying it was hopeful that a settlement could be reached that would allow gay groups to march.

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But two days before the parade, that doesn’t appear likely to happen.

“We were hopeful an agreement could be reached to allow everyone, regardless of orientation, to participate in this parade. However, given the current status of the negotiations, this may not be possible. We stand with Mayor Walsh, Congressman Lynch, and other community leaders in our decision not to participate in this year’s parade,” the statement read.

The decision came a day after a South End bar said it would no longer serve Sam Adams products because of the brewer’s affiliation with the parade, which is scheduled for Sunday.

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Boston Mayor Marty Walsh has been trying to broker a deal that would have allowed a group of gay veterans to march, but those negotiations broke down. Walsh said he is hopeful as the parade approaches. “Yesterday I was 60/40, today I’m 50/50,” Walsh told WBZ-TV’s Beth Germano. “It’s going the other way now.”

There has been no comment yet from the parade organizers, the South Boston Allied War Veterans Council.

Boston Beer Company said it will continue its support of “Senator Linda Dorcena Forry and her St. Patrick’s Day breakfast.”

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