In an article published on Dec. 22, 2017 in Brewbound, Kristen Burgers and Larry Katz discuss the bankruptcy process and tools available for breweries to navigate it. “The proliferation of craft breweries is both a blessing and a curse. Demand for craft beer continues to grow and new players enter the market in response to the demand. At some point, however, the market will become oversaturated,” they explain. Because of high costs associated with the large commercial space and equipment needed, breweries that exhaust startup capital may face financial challenges without strong sales. “When confronted with overwhelming financial burdens, a bankruptcy filing can help you manage and prioritize your obligations to third parties and ensure the long-term survival of your brewery. Chapter 11 bankruptcy offers many benefits and tools to aid a debtor in the reorganization process,” they share. “Bankruptcy is, of course, a last resort, but may prove necessary.” For the full article, click here.
Myrna H. Rooks