1 week Ago By Jacob Willeford
A PROMINENT brewery in one city is filing for bankruptcy. The company confirmed its intention to file for Chapter 11 on Friday, noting hundreds of thousands of dollars in debt . Customers who frequent Urban Chestnut Brewery locations in St.
Louis, Missouri, may have to go elsewhere soon, as per reports from local NBC affiliate KSDK . While a spokesperson for Urban Chestnut Brewery told the outlet that it has yet to officially file for bankruptcy , the company began the process last week. It already agreed to reorganize its business strategy and assets, according to documents in BK Database, a legal services platform.
The documents revealed that Urban Chestnut Brewery faced financial struggles through the height of the coronavirus pandemic in 2020. Read More on Bankruptcies Issues continued afterward, leading to two lawsuits alleging the company still owes creditors approximately $400,000 on outstanding loans. Other debt amounts were not disclosed.
The spokesperson for the company said the bankruptcy filing would help with a "financial restructuring that will relieve the company of the financial pressure it has experienced since the pandemic." Urban Chestnut Brewery is also set to have a new investor — Brian Travers, according to KSDK. Most read in Money CELEBRATION ON Details about the financial terms in the new agreement with Travers remain unclear.
While the future for the brewery company remains somewhat unclear, customers can still look forward to Oktoberfest at its locations next month, per Fox 2 . Dates for the celebration are set for October 11 through 13. No information about whether the bankruptcy filing will impact Oktoberfest celebrations at Urban Chestnut Brewery has been released.
The company's intent to file also comes amid a retail bloodbath of bankruptcies this year. In spring, several well-known fashion brands submitted Chapter 11 filings. Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay.
The process allows businesses to start fresh and gain access to new credit. Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia . Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open - even if it means selling off most of the company's properties.
Chapter 7, on the other hand, sells all of a company's assets, putting it out of business. Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with "parties of interest involving more than one country," per the United States Courts . HEADED OUT Express announced its bankruptcy in April, closing over 100 stores over the coming months.
Rue 21 also filed , closing its remaining stores and selling its assets. Ted Baker filed for its stores in the United States and Canada, with liquidation sales of 30% off and above. Restaurant chains have also taken hits.
Read More on The US Sun Red Lobster notably filed for bankruptcy in May and closed hundreds of restaurants. Tijuana Flats also closed several stores amid its bankruptcy and restructuring efforts..
