Economic challenges in the craft brewery industry continue to force brewers to shut down facilities and, in some cases, file for bankruptcy protection, to the disappointment of beer-loving consumers.
The industry had a rough year in 2025 as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.
And the craft beer apocalypse has continued into 2026 after another year of declining volume.
Craft beer volume declines in 2025
Craft beer volume was estimated to be down about 5% from the previous year, according to the Brewers Association’s mid-year report in July 2025, Craft Brewing Business reported. Volume was down about 4% in 2024.
Final production numbers for 2025 will not be available until the association’s Beer Industry Production Survey is released later in the first quarter of 2026.
Brewery files for bankruptcy protection
Craft breweries that recently filed for bankruptcy include Springfield, Mo.-based 4 by 4 Brewing, which filed for Chapter 11 protection on Jan. 15, 2026, and plans to keep its store and taproom open and operating, TheStreet’s Daniel Kline reported.
The debtor, which faced significant financial headwinds in recent years, said it will restructure its finances, strengthen operations, and keep its business open, the Springfield Daily Citizen reported.
A craft beer business is also a difficult one to establish, as Morrisville, Pa.-based 21 Locks Brewing Co. launched its business with a ribbon-cutting event on May 30, 2025, only to shut down permanently on Jan. 9, 2026, after a comedy show event.
Brewing company closes down
The craft brewery, taproom, restaurant, and event space posted a message on social media on Dec. 31, 2025, stating that it would close down its business.
“Closed Indefinitely,” the brewery’s message to its customers stated. “This is not the message we thought we’d be sending. After much thought, we’re sharing that 21 Locks Brewing Company will be closing its doors.”
21 Locks has not filed for bankruptcy.
Brix City Brewing no longer operates a taproom, but continues distributing its beer in bars, restaurants, and liquor stores.
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Brix City Brewing files for bankruptcy
And now, New Jersey-based craft brewery Brix City Brewing LLC files for Chapter 11 bankruptcy about nine months after closing its flagship taproom and transitioning to contract brewing and distribution-only operations.
The debtor did not indicate a reason for filing for bankruptcy protection.
However, the brewery wasn’t generating enough revenue to cover its rising rent, forcing Brix City Brewing to close its brewery and taproom.
The Little Ferry, N.J.-based brewery filed its petition in the U.S. Bankruptcy Court for the District of New Jersey in Newark on Feb. 5, listing over $103,000 in assets and $1.05 million in liabilities, including over $600,000 in secured claims, according to RK Consultants.
The debtor’s largest unsecured creditors include the U.S. Small Business Administration, owed over $433,000, Connect One Bank, owed over $105,000 in two loans, and JPMCB Card Services, owed over $86,000, court papers said.
Brix City Brewing plans relocation
Brix City Brewing posted a message on its website stating it was relocating, but with no details on when and where it might reopen.
“We’re Relocating! (taproom at 4 Alsan Way in Little Ferry is now closed),” the message read.
Brix City Brewing opened its doors in Little Ferry in May 2015, but closed the taproom 10 years later due to rising rent, according to its website.
More bankruptcies:
- 73-year-old family diner franchisee files Chapter 11 bankruptcy
- More troubled regional airlines file for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
The brewery’s website listed 21 craft beers on its taproom menu in five categories: Hoppy & Juicy, Crisp & Bright, Toasted & Nutty, Dark & Rich, and Sour, Tart and Funky.
Brix City Brewing’s name originates from the term Brix, which represents the sugar content of an aqueous solution, and from Newark, N.J., being nicknamed “Brick City,” according to the company’s website.
Brix City Brewing’s Top 10 Unsecured Creditors:
- U.S. Small Business Administration, $433,865
- Connect Bank $105,957
- JPMCB Car Services, $86,189
- Country Malt Group, $58,584
- Blefa Kegs Inc./American Keg, $36,981
- New York Hop Guild, $31,721
- Proximity Malt LLC, $25,865
- Lindenmeyr Munroe, $22,059
- Victory Packing LP, $17,930
- Willamette Valley Hops, $13,271
- Rahr-BSG, $12,302 Source: RK Consultants
Related: Another troubled firearms company files for Chapter 11 bankruptcy