Four beer brands now file for unexpected bankruptcy as the brewery industry has faced financial distress since the Covid pandemic.
Several regional breweries are now filing for Chapter 11 protection to restructure their debt, or in some instances, shutting down permanently, reports TheStreet.
A craft brewery in dire straits is Cherry Hill, N.J.-based Forgotten Boardwalk Brewing which filed for Chapter 11 protection on Jan. 12 facing economic hardship after the company’s owner was not allowed to renegotiate its lease with the brewer’s landlord.
The brewery will continue to operate and sell off product through its final day of operation on Feb. 29.
Some craft breweries are in better shape and only need to file for Chapter 11 to reorganize and restructure debts.
Colorado brewery, Guanella Pass Brewing, on Dec. 30 filed for Chapter 11 protection to reorganize its debt.
Zydeco Brew Werks of 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.
However, the brewer’s second location at Tampa’s Museum of Science and Industry will remain open as the company’s owners search for a new home for its main brewery
Finally, Tampa, Fla.-based craft brewery and coffee shop King State on Feb. 2 filed for Chapter 11 bankruptcy protection blaming a city pipe replacement project near its business location for disrupting its operations for many months, the Tampa Bay Business Journal reported.
The once-profitable brewery and coffee roaster reported a net loss of $72,600 in the fourth quarter of 2023, and the owners estimate that total losses could climb to $300,000 by April.
The debtor listed $1 million to $10 million in liabilities in its petition, including about $500,000 in unsecured claims.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A popular furniture store now announces an unexpected closure, shuttering a total of 6 locations in the same city, sources report.
The RoomPlace announced on Friday that a total of six locations in and around Indianapolis, Indiana would be closing as the company files for Chapter 11 bankruptcy.
Locations in Kenosha, Wisconsin and Peoria, Illinois are also set to close their doors.
The Bed Bath and Beyond rival has claimed that the restructuring will allow the retailer to strengthen its business in other populous areas, such as Chicago, Illinois.
CEO Bruce Berman confirmed that the decision to close the stores was not “easy.”
“As a family-run business with strong community ties, it’s not an easy decision to close stores and impact the people who work, shop and live in the affected communities,” Berman told Furniture Today.
“Retail sales throughout the country continue to be down, and our industry has been hit hard.
We’re making the tough decisions now to ensure we’re around for another 100 years.”
As six stores are shuttering, the company is looking to strengthen 18 locations in and around the Chicago area.
“What was once viewed as taboo is now a strategic way to realign and strengthen a business,” Berman said.
The CEO has said the company is hopeful the changes will “align its costs with its projected sales and economic realities.”
Berman acquired The RoomPlace, which opened in 1912 after winning an auction in December 2011.
No date has been yet set for the closure of the six locations and any orders placed before February 2 are expected to still be fulfilled.
The RoomPlace stores affected by the decision are located at 5651 E. 86th St., 7609 Shelby St., 8401 Michigan Road, 8301 E. Washington St. in Indianapolis; 14640 Greyhound Plaza in Carmel; as well as 2575 E. Main St., Suite 198, in Plainfield.
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Also Read: A Popular Clothing Retailer Now Begins An Unexpected Liquidation
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