Popular craft brewery turns to Chapter 11 bankruptcy to survive | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While I enjoy a good beer, covering bar, restaurant, and brewery finances has made it clear how difficult it is to turn passion into a profitable business.

That disconnect has become more visible, as closures continue to outpace openings across the U.S. craft beer industry.

Many homebrewers and beer fans follow their dream and open up a brewery, but having enough money to open is not the same as being able to create a profitable business model.

“With closings continuing to outpace openings, the number of craft breweries operating in June 2025 (9,269) was down 1% from the number operating in June 2024 (9,352). By business type, the smaller distribution-focused microbreweries experienced the largest drop-off at -3%, followed by taprooms at -1%, and brewpubs and regional breweries with no change year-over-year,” according to a 2025 report from the Brewer’s Association.

Scan data tracks with Brewers Association survey results; Nielsen IQ showed BA-defined craft down 4.1% in volume for the first half of 2025, a hair better than beer overall (-4.2%).

“Retailer and wholesaler rationalization, increased competition for limited shelf space, and consumers becoming tighter with their proverbial pocketbooks are all contributing to craft contraction in the off-premise channel where the bulk of beer is sold,” the data showed.

Now, 4 By 4 Brewing, another beloved regional favorite brewery, has filed for Chapter 11 bankruptcy.

4 By 4 Brewing intends to stay open

At the time of the filing, 4 By 4 Brewing had not closed its doors, and the company intends to restructure and keep operating. The company operates a store and a taproom in Springfield, Missouri.

It also hosts special events.

Both locations will remain open, and all scheduled events will take place as planned, according to 4 By 4 Brewing.

“This move is about protecting the future of 4 By 4, not ending it,” the company said in an emailed statement to the Springfield Daily Citizen. “Like many small breweries, we’ve faced significant financial headwinds in recent years.”

More Bankruptcy:

The company is working with private financing options to remain open.

“This restructuring allows us to realign our finances, strengthen operations, and keep doing what we love, serving our community and brewing great beer,” it shared.

Breweries have struggled for the past year.

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4 By 4 Brewing Chapter 11 bankruptcy facts

Chapter 11 filing: 4 By 4 Brewing Company, LLC filed a voluntary Chapter 11 petition on January 15, 2026, in the U.S. Bankruptcy Court for the Western District of Missouri (Springfield).
Case number: The case is 6:26‑bk‑60027 and is assigned to Judge Brian T. Fenimore.
Business info: The debtor is listed as 4 by 4 Brewing Company, LLC, located at 2811 E Galloway St. STE A, Springfield, MO 65804.
Reorganization plan schedule: The Chapter 11 plan and disclosure statement are due by May 15, 2026.
Post‑petition financing: The brewery has filed a motion to borrow approximately $250,000 for post‑petition financing to sustain operations during the bankruptcy process.
Cash collateral motion: A motion to use cash collateral secured by loans (including Arvest and SBA loans) has also been filed to support continuing operations during restructuring.
Attorney representation: The company is represented by Spencer P. Desai of The Desai Law Firm, LLC. Sources: PacerMonitor, Inforuptcy

Craft breweries continue to struggle

4 By 4 Brewing joins a long list of craft breweries that filed Chapter 11 bankruptcy over the past 12 months.

Rogue Ales & Spirit: Filed for Chapter 7 liquidation after abruptly closing all operations. The parent company reported about $5.6M in assets and $16.7M in liabilities. Rogue was historically among approximately the top 50 U.S. craft breweries and Oregon’s third-largest craft brewer, according to PacerMonitor.
Iron Hill Brewery & Restaurant: The multi-location Mid-Atlantic brewpub chain closed all 16 locations and filed for bankruptcy in late 2025 after financial struggles, reported PacerMonitor.
Bosque Brewing Company: Popular New Mexico craft brewery filed Chapter 11 bankruptcy (Oct. 6, 2025) with assets between $1 million and $10 million and liabilities between $10 million and $50 million, according to PacerMonitor.
Memphis Made Brewing Co.:Chapter 11 bankruptcy filing in Aug 2025; exploring reorganization and potential sale while continuing some operations, reported Memphis Beer Blog.
Alamo Beer Company: San Antonio craft brewery filed Chapter 11 protection in early 2025 as part of restructuring amid industry headwinds (assets/liabilities $1 million to $10 million), reported PacerMonitor.

“The results of this midyear survey indicate that for many breweries, the challenges they’ve faced over the past few years have either continued or accelerated,” said Matt Gacioch, the Brewers’ Association’s staff economist.

Beer brands have stopped growing their customer base.

“The category is now static in terms of number of drinkers,” said Bart Watson, chief economist with the Brewers Association, at the group’s annual conference, Forbes reported. “And the number of people saying they are drinking more craft beer is now equal to [the] number of people saying they are drinking less.”

He does, however, see hope for the industry.

“But customers are still willing to pull out their wallets for beers they value and enjoy,” said Watson. “Customers still spent almost $30 billion on small and independent brewers last year.”