The craft beer industry has been battling an economic downturn over the last three years, beginning with 385 brewery closures in 2023, according to the Brewers Association.
The industry slump led to more brewery closures than openings in 2025, with 434 shutting down and 268 opening by mid-December 2025, Brewbound reported on social media.
To avoid closing its brewery, Denton County Brewing Company has filed for bankruptcy to give it breathing room from its economic issues.
Denton County Brewing Company files for Chapter 11 bankruptcy to reorganize.
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Denton County Brewing files bankruptcy
The struggling craft brewery filed for Chapter 11 bankruptcy protection on April 3 to reorganize its business and restructure debt, What Now reported.
The Denton, Texas-based brewery filed its petition, Case No. 26-41148, in the U.S. Bankruptcy Court for the Eastern District of Texas, listing $50,000 to $100,000 in assets and $500,000 to $1 million in liabilities, according to PacerMonitor.
Denton County Brewing’s largest unsecured creditors include Chase Bank and Fortis Solutions Group, according to What Now. Funds will not be available to distribute to unsecured creditors.
The craft brewery, which opened in 2017, brews over 25 original beers that are featured on its taps. It also features guest taps, wines, ciders, and sake. For entertainment, it offers board games and trivia nights, according to its website.
Brewery celebrates 9th anniversary
To observe its 9th anniversary, Denton County Brewing Company is hosting a Rare Barrel Tasting on one night only, on April 17, before celebrating its anniversary with a brewery party on April 18.
Denton County Brewing Company has some award-winning beers, as it won a Bronze Medal in the Strong Lagers category of the Texas Craft Brewers Cup for its Doppelbock in 2026, according to Beer in Big D.
The brewery also won a Bronze Medal in the American & International Light Lager category for its Devil’s Tears in 2024, and a Bronze Medal in Barrel & Wood Aged Beer for its Small Town Strong in 2022 at the Texas Craft Brewers Cup, according to the Texas Craft Brewers Guild.
Penn Brewery also files to reorganize
Denton County’s bankruptcy follows the Chapter 11 filing by Pittsburgh-based Penn Brewery parent Pennsylvania Brewing Company Inc. on March 31.
The company, which was purchased in 2022 by Pittsburgh businessman Stefan Nitsch, is the oldest and largest brewery in the city, Pittsburgh Magazine reported.
The company operates its brewery and restaurant at 800 Venial Street in Pittsburgh, and also has a location at Pittsburgh International Airport in Concourse A, Airside Terminal.
Focusing on high-quality brews, the brewery has won 20 Great American Beer Festival and World Beer Cup medals, according to its website.
3rd Level Brewing files to liquidate
A combination of industry headwinds and financial distress forced fledgling Texas craft brewery 3rd Level Brewing LLC to file for Chapter 7 bankruptcy to liquidate its assets on April 1, according to BK Alerts.
The brewery and taproom has not permanently closed yet, at last check, and plans to keep operating until it is no longer allowed to, owner Clint Bradley told The Street’s Kirk O’Neil.
“We’ll see how this plays out,” Bradley said. “We’re going to operate as normal until someone tells me I have to stop operating.”
The brewery and taproom has events planned through May 9 on its website, and it invites customers to visit on Mother’s Day, Memorial Day, Father’s Day, and 4th of July.
Bradley concluded in October 2025 that the business would need to file for bankruptcy after facing financial difficulties.
“I thought for sure we would not be open in December,” Bradley said.
Bank sought to foreclose on brewery
The brewery’s bank planned to foreclose on the brewery, but the bankruptcy filing imposed an automatic stay on all legal actions during the bankruptcy case.
3rd Level Brewing turned to GoFundMe last year, seeking to raise $3,500 to save its business, but instead raised over $13,000 as a lifeline to keep operating.
Bradley, however, refunded the $13,000 to the donors when he realized the business would need to file for bankruptcy and possibly close.
3rd Level Brewing opened for business in June 2023 as a nerd-themed craft brewery, founded by comic and video game enthusiasts Bradley and Ross Winner.
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