Craft brewery distress has been widespread in the US in recent years, as well as in Canada and the UK.
In Canada, between 10% and 20% of that country's craft breweries face closure by 2024, Canadian Craft Brewers Association CEO Christine Comeau told CBC.
Related: Regional beer brand files for Chapter 11 bankruptcy to reorganize
UK craft breweries have had a tough couple of years. Data from accountants Price Bailey shows that 38 breweries closed in all of 2022, but 35 closed in the first six months of 2023.
American craft breweries close operations
The difficulties facing the American craft beer industry are well known. San Francisco's Anchor Brewing, a highly regarded independent craft brewery since its founding in 1896, filed for bankruptcy and disappeared in the summer of 2013 after its sale to Japanese brewer Sapporo Holdings Limited in August 2017 ended in disaster. for the beloved brewery.
Cherry Hill, New Jersey-based Forgotten Boardwalk Brewing filed for Chapter 11 protection on Jan. 12, facing desperate measures after the company's owner was not allowed to renegotiate its lease with the brewery's owner. . The brewery will continue to operate and sell products until its last day of operation on February 29.
Hackensack, New Jersey-based craft brewery The Alementary Brewing Co. decided to permanently close operations after a contract sale of its business fell through. The brewing company said in a Jan. 29 Facebook post that its taproom will remain open as it moves through the process, but did not indicate when the brewery's last day of operation will be or whether it will file for Chapter 11 or Chapter 7 bankruptcy. . settlement.
Finally, the defunct retail franchise chain Craft Beer Cellar filed for Chapter 7 bankruptcy to liquidate its assets, as it suffers financial difficulties and cannot sell its business.
Franchise Retailer Craft Beer Cellar Files for Chapter 7 Liquidation
The Belmont, Massachusetts craft beer retail and restaurant chain filed its petition Feb. 5 in the U.S. Bankruptcy Court for the District of Massachusetts in Boston, listing up to $100,000 in assets and between $100,000 and $100,000 in assets. million dollars in liabilities.
Among the bankrupt retailer's debts is a Nov. 28 settlement of a judgment against it from Cambridge District Court in Medford, Massachusetts, ordering it to pay $181,770 in unpaid rent and fees to its landlord, Albert J. Locatelli. Realty Trust, for its flagship Belmont. location. The debtor operated a Craft Beer Cellar bottle shop and a Trinktisch German restaurant at a Belmont Center location.
Craft Beer Cellar first opened in 2010 to instant success, attracting “beer geeks” from across the region, the Belmont Voice reported. The owners subsequently launched a franchise business that initially met with meteoric success.
The company built a chain of 33 franchises in 14 states and Washington, D.C., after beginning franchising in 2012, according to All USA Franchises. However, the company had been reduced to four stores by the end of 2023, co-owner Suzanne Schalow reported in December.
The debtor reportedly surprised its clients in the summer of 2023 when the company's owners said they were seeking a sale of the companies. Fans of the store and restaurant received the latest bad news in November when Craft Beer Cellar and the restaurant revealed they would be closing permanently at the end of the year after failing to find a buyer for the business.
Owners blamed the effects of the Covid pandemic, the need for greater work-life balance and irreconcilable differences with the landlord as reasons for closing their businesses.
Related: A veteran fund manager picks his favorite stocks for 2024
