Popular Beer Brands File for Chapter 11 Bankruptcy Protection

Major beer brands are now file for unexpected bankruptcy protections as the brewery industry has faced financial distress since the Covid pandemic and its aftermath. There's a shift towards healthier options like low-calorie seltzers and non-alcoholic beverages, and increased interest in craft beers and local breweries. This has put pressure on established brands not to mention, inflation that has caused an increase in prices for ingredients, packaging and transportation have squeezed profit margins. Having said that, a lot of brands expanded to quickly among the  increasingly crowded market, with new craft breweries and international brands vying for market share. 

Beer Brands Who Filed For Bankruptcy Protection:

1. Zydeco Brew Werks: Ybor City on Jan. 11 filed for Chapter 11 bankruptcy protection with plans to close its main brewery and restaurant location on 7th Avenue in Tampa, Fla.
2. Forgotten Boardwalk Brewing: N.J.-based craft brewery filed for Chapter 11 protection on Jan. 12 in the U.S. Bankruptcy Court for the District of New Jersey facing economic hardship after the company's owner was not allowed to renegotiate its lease with the brewer's landlord.
3. Weyerbacher Brewing Company: Founded in 1995 in Easton, Pennsylvania, Weyerbacher filed for Chapter 11 bankruptcy in 2019 after accumulating significant debt from expansion efforts. The company restructured and continued operations but faced ongoing financial difficulties, leading to a second bankruptcy filing in June 2022.
4. World of Beer: This Tampa-based chain, known for its extensive selection of craft beers, filed for Chapter 11 bankruptcy protection in August 2024, citing financial challenges exacerbated by the COVID-19 pandemic. The company closed several locations during the restructuring process but emerged from bankruptcy in December 2024 with plans for future expansion.
5. Magic Rock Brewery: A renowned craft beer maker based in Huddersfield, UK, Magic Rock Brewery announced plans to appoint administrators in January 2025 due to financial difficulties, including overdue accounts. The move aims to explore rescue options and protect the brewery from creditor demands, though it raises the risk of collapse.
6. Fourpure Brewing Company: In October 2024, Fourpure entered voluntary administration to protect itself from challenging economic conditions in the drinks and hospitality sectors. Operations were transitioned to Magic Rock Brewing, with efforts to maintain the brand while pursuing growth.

It's important to note that not all beer companies are struggling. Some larger companies are adapting by diversifying their product lines and focusing on premium brands. However, the bankruptcies highlight the challenges facing the industry and the need for companies to innovate and adapt to changing consumer tastes. If financial strains can happen to big multi million dollar companies, they most certainly can happen to regular consumers. Don't wait until it's too late, find out your options with a FREE over the phone consultation from the  Law Offices of John T. Orcutt, PC.