30-year-old beer brand files Chapter 7 bankruptcy to liquidate

The craft beer industry has struggled over the last two years, with overall U.S. beer production and imports down 1% in 2024 and craft brewer volume sales declining 4% in 2024 and about 5% in 2025, according to a Brewers Association report.Domestic beer shipments also declined 5.9% in 2025, losing about 8.68 million barrels of beer, according to the Beer Institute as Beerbound reported.Beer shipments declined in 2025Shipments in 2025 reached 139 million barrels, a decline from 147.7 million barrels in 2024.Consumer demand and alcohol consumption rates of younger generations also declined, the Brewers Association reported.Ingredients and material prices rise“Raw material costs have emerged as a significant constraint in the North American craft beer market, with substantial increases in the prices of essential ingredients, such as malted barley and hops, alongside packaging materials like aluminum cans,” according to a 2026 North American Craft Beer Market Report by Mordor Intelligence.“The impact of these cost increases has been particularly severe on production economics, forcing breweries to revise their pricing strategies and operational models,” the report said.All of that bad news led to businesses shutting down, as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.The closings were devastating for craft beer fans who were disappointed to learn their favorite brewpubs had shut down. 30-year-old The Brewer's Art craft brewery surprised both employees and customers by abruptly closing and filing for bankruptcy liquidation.Shutterstock Brewer's Art files Chapter 7 liquidationAmong the closings this year has been the owners of a longtime Baltimore craft brewery, The Brewer's Art, which filed for Chapter 7 bankruptcy to liquidate its assets after suddenly shutting down its business.Old Line Brewers LLC filed its petition in the U.S. Bankruptcy Court for the District of Maryland on Feb. 13, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Public Access to Court Electronic Records as reported by Bankruptcy Observer.Brewery abruptly shut downThe Brewers Art abruptly shut down its brewery and restaurant on Feb. 2, after 30 years of operating, with a sign posted on its front window, according to WMAR-TV."Dear Friends, Sadly we had to permanently close our doors today, February 2, 2026. Thanks to all of you for all of your support over the years. Thanks for the memories. Best Wishes. The Brewer's Art," the sign said.The brewery owner did not state a reason for closing its business, but the Comptroller of Maryland had placed an $85,000 lien against The Brewer's Art on Dec. 12, 2025, WMAR reported.More bankruptcies:73-year-old family diner franchisee files Chapter 11 bankruptcyMore troubled regional airlines file for Chapter 11 bankruptcyMajor department store brand liquidates in Chapter 11 bankruptcyThe Brewer's Art website has been disabled, except for a message on the home page:"We have closed our doors forever. Thanks to the loyal support over the years," the message said.The small craft brewer's closing is symptomatic of a broader decline in the U.S. beer sector, as observed with Anheuser-Busch's closing of three breweries in Fairfield, Calif., on Feb. 22, 2026, Merrimack, N.H., in January 2026, and Newark, N.J., plant in December 2025.The website listed a partial menu that included flatbreads, garlic fries, mac and cheese, soft pretzels, soup, and salads.

Old Line Brewers, which opened the brewery in 1996, listed its largest creditors in the filing, including the U.S.

Small Business Administration, owed $199,000; M&T Bank, owed $101,000; State of Maryland, owed $85,500; and BendixHQ LLC, owed $78,000, The Baltimore Banner reported.Owner Volker Stewart is owed $792,000 in a business loan and unpaid wages.Closing surprised employeesSurprised employees said they were not aware of the brewery's financial struggles, according to The Baltimore Banner.The debtor listed assets valued at $107,000, including brewing equipment and kitchen appliances, valued at $75,000; Untapped beer kegs, valued at $4,500; and hops valued at $1,250.Usually, in such cases, no funds will be available to pay unsecured creditors.The Brewer's Art top creditorsU.S.

Small Business Administration, owed $199,000.M&T Bank, owed $101,000.State of Maryland, owed $85,500.BendixHQ LLC, owed $78,000.Related: 30-year-old shipping company files Chapter 11 bankruptcy