That increasing numbers of breweries in recent years have closed or entered into bankruptcy is not some grim harbinger portending the impending pop of a craft-beer bubble. Rather, the increase in bankruptcy filings can be taken as a sign of the craft-beer industry’s maturity (in any mature industry, the herd needs thinning from time to time).
However, it is undeniable that, given the increased competition within the brewery space and increased competition from wine, spirits, cider, and even new entries such as hard seltzer, a lot of breweries are struggling. And some breweries may seek the relief offered by bankruptcy law to emerge stronger and more profitable than before. After all, General Motors and Chrysler declared bankruptcy in 2009 and emerged stronger than ever.
Indeed, a number of breweries have recently filed for bankruptcy, including Pennsylvania-based Rivertowne Brewing, D.C.’s Hellbender Brewing Company and Capitol City Brewing Company, Indiana’s Tow Yard Brewing Co., and San Francisco’s Magnolia Brewing Company. In other instances, breweries faced foreclosure and saw their assets sold to third parties, as was the case with San Diego’s Green Flash Brewing/Alpine Beer Co. and New Hampshire’s Smuttynose Brewing Company.