Urban Chestnut Brewing Co. plans to file for Chapter 11 bankruptcy protection and has reached an agreement with a strategic financial adviser, it announced Friday.
The company said in a press release that the move will allow Urban Chestnut to financially reorganize without interrupting its brewing operations. No jobs will be impacted and Urban Chestnut鈥檚 products and locations will go unchanged, according to the statement. The company鈥檚 leadership team of David Wolfe, Florian Kuplent and Jon Shine will also remain in place.
Wolfe, a co-founder of Urban Chestnut, said in a statement the company will be working with an investment partner, Brian Travers.
This move will potentially help alleviate Urban Chestnut of its financial woes. For years, the brewer has failed to make payments on a pair of loans and now owes two creditors more than $400,000, according to two recent lawsuits.
People are also reading…
One lawsuit filed in May accuses the company of taking out a 10-year, $50,000 loan in July 2013, but not making payments for about seven years. A second filed in May states that Urban Chestnut has only paid $16,000 in interest-only payments on a $100,000 loan, that has since reached maturity.
Urban Chestnut鈥檚 press release cites the COVID-19 pandemic as a factor that led to financial pressures, an obstacle seen across the entire craft beer industry. Rising costs, interest rate hikes and shifting consumer habits led O鈥橣allon Brewery to also file for bankruptcy protection last year.
Urban Chestnut was founded in 2010 by Wolfe and Kuplent.
It opened its first location, Midtown Brewery & Biergarten, in January 2011 in the Covenant Blu-Grand Center neighborhood of 狐狸视频. Three years later, it opened its second location in The Grove. A third Urban Chestnut brewery is operated in the Hallertau region of Bavaria, Germany.
No Urban Chestnut spokespeople were made available for comment.