A popular beer brand has now filed for an unexpected bankruptcy in efforts to reorganize the business and stay afloat, the company said.
Metropolitan Brewing, one of Chicago’s oldest craft breweries has filed for Chapter 11 bankruptcy “largely because it cannot afford to pay the back rent it owes its lenders,” reports TheStreet.
“Yeah, it’s true. Earlier this week, we filed for Chapter 11 bankruptcy protection.
This is the ‘reorganization’ type of bankruptcy, meant to help us right our ship.
The details are super boring. Importantly…
We are still open, and we have no current plans to change that status,” the company’s owners shared.
The company’s Chapter 11 filing blames its struggles on its rent.
The brewer moved to a new, more expensive, location in 2017 and is now unable to fulfill its obligations.
“The bankruptcy is being filed because while (Metropolitan) can pay market rent for the brewery space going forward . . . there is no way the (brewery) can ever repay the amount of back rent the landlord is seeking,” the Chicago Tribune reported the company shared in its filing.
“We still have plenty of fight in us. And we still believe in the beer we brew. We’ll get through this. It will just be easier — and way more fun — if you join us,” the company shared in a post reminding customers that it’s open year-round.
However, industry leaders say breweries in general are facing challenges nationwide.
“Honestly, it’s not just Portland, brewery sales are down nationwide,” said Larry Clouser who has owned multiple breweries in Oregon in an interview with KGW8.
“Within the last month, seven breweries and taprooms in Portland have closed or announced their upcoming closure.
Rising costs of operation, changes in consumer drinking habits, and the lingering effects of the pandemic have all affected the market,” reported an Oregon Public Radio.
Other Economy News
A new wave of massive layoffs now hits Missouri as thousands of job cuts are scheduled to take place this month through year’s end.
“CareFusion, a surgical equipment supplier based in St. Louis, is laying off 148 employees.
Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site.
CareFusion filed a WARN notice with the Missouri Office of Workforce Development yesterday advising of the job cuts.
Last week, Propak Logistics, a leading provider of comprehensive supply chain services, advised they were closing a facility in Jackson, resulting in 93 employees losing their jobs.
The filing stated that on December 8, 93 employees at the Jackson facility would lose their positions,” reports Ash Jurberg.
So far for 2023, Missouri has had more than 6,100 layoffs with approximately 29 businesses filing WARN notices.
California remains the #1 state with the most layoffs in the country.
Below are the businesses that filed a WARN act of upcoming layoffs in Missouri this year.
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