Beer bankruptcy apocalypse claims another fan-favorite brand

Before the covid pandemic, craft breweries had a moment. Beer snobs ruled the day, creating a market for local brewers to expand their businesses into regional distribution.

The demand for interesting beers was clear: Younger drinkers drove a movement that pushed local brewers to challenge the established brands. But that movement was wiped out once covid hit because craft brewers relied on people visiting their breweries.

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Even brands that had good distribution in grocery and liquor stores suffered during the period where people could not visit their brewery/bar locations. It was a financial drain that pushed a number of these popular brands to the edge of ruin.

And after the pandemic ended, many of these beer brands suffered as younger consumers moved away from drinking beer, Some embraced the alcohol-free mocktail movement while others simply swapped cocktails, hard seltzers or other alcohol for beer.

Now, the craft beer industry is facing an apocalypse. Most famously, Anchor Brewing, the San Francisco icon that had national distribution, shut down last summer. A wave of bankruptcies followed, including regional favorites like Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks and Cleveland’s Terrestrial Brewing.

It has been a devastating run for the craft-beer industry, and the bleeding has not stopped.

It has been a rough period for craft breweries.

Image source: Shutterstock

Another brewery files Chapter 11 bankruptcy

A brewery that touts being at an 8,530-foot elevation, Guanella Pass, also has the distinction of being the first brewery in Georgetown, Colo., since Prohibition. The company described its two locations on its website,   

“At the foot of the Guanella Pass Scenic Byway in Historic Georgetown, CO, sits the original Brewery, and at the foot of Berthoud Pass in downtown Empire sits our second tap room and kitchen. A true mountain brewery,” the company says. 

“We believe that where you drink beer is as important as what beer you drink. So leave the grind behind, sit for a bit, and share a story or two. Because here, all you need is what you have and a good beer.”

The brewery also distributes its beers regionally at a number of locations in Colorado.

Guanella Pass continues to operate after its late-December Chapter 11 filing and the brewery has an upcoming big event scheduled for Feb. 17.

“Pass it along, there’s a Pig Roast in town! Join us at Guanella Pass for our piggy throw down! We’ll be smokin’ this bad boy starting late Friday night to get ready for our grand meat cutting at 3pm. Feel free to swing by and say hi to our BBQ crew. It’s $15 per plate, come and grab some before we run out,” the company said on its website. 

Guanella Pass has a lot of debt

In its bankruptcy filing, Guanella Pass disclosed that it had $2.3 million of debt while bringing in only $860,000 of revenue in the previous year. The company showed $72,000 in assets at the time of the filing. 

The brewer, which hopes to restructure its debt and keep operating, has a significant number of creditors,

“It owes $573,000 to First Savings Bank, which loaned it money in 2021, and $256,000 to the Clear Creek Economic Development Corp., a nonprofit that loaned it money in 2019. Both loans are collateralized by the property at 501 Rose St. in Georgetown,” the Denver Post reported.

The brewer also owes its majority shareholders, Steven and Stacey Skalski, $700,000. In addition, the company has an unpaid $135,000 loan with the U.S, Small Business Administration and owes the Colorado Department of Revenue $100,000 along with $32,000 to its food vendor, $22,000 to its bookkeeper and $10,000 to its power company, the newspaper reported.

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