A popular brewery now files an unexpected bankruptcy in efforts to restructure its finances after its liabilities surged upwards of $10m.
Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8.
In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11.
“Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed,” USCourts.gov explained.
Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000.
The filing noted that the company does expect to have funds available for unsecured creditors.
The popular brewery operates three taprooms and sells its beer to go at those locations, reports TheStreet.
“Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina.
Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works,” the company shared on its website.
The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).
Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing.
An email request for comment sent through the company’s contact page was not immediately returned.
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Other Economy News Today
A fashion company now files an unexpected bankruptcy just three months after being acquired and continuously losing money.
Frasers Group is shutting down luxury ecommerce site Matchesfashion, saying in a statement that “continued funding requirements would be far in excess of amounts that the Group considers to be viable.”
As a result, Matches has been put into administration, the UK equivalent of bankruptcy, reports Retail Touch Points.
Since rebranding from Sports Direct International to Frasers Group in 2019, the company has been steadily growing its slate of fashion and lifestyle brands, which now includes Flannels, House of Fraser, Everlast, Amara Living, Gieves & Hawkes and Slazenger, among others.
The company bought digital fashion retailer Misguided in 2022 but sold that company to Shein late last year.
Matches is a UK business but makes most of its money selling overseas, according to the BBC.
The company has an online presence in 176 countries as well as three stores in London.
Frasers Group spent £52 million, or $63 million, to buy Matches in December 2023 as part of its ongoing “elevation strategy” to boost the luxury factor in its portfolio.
Since the acquisition, however, Frasers said in a statement that the business continued to miss targets and lose money.
“Whilst Matches’ management team has tried to try to find a way to stabilize the business, it has become clear that too much change would be required to restructure it.”
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Also Read: A Massive Retailer Now Closes And Begins Liquidation Sale
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