The craft beer industry has faced a significant downturn over the last two years as dozens of breweries shut their doors permanently.
Some of the symptoms of economic hardship in the industry were seen in the attendance at the industry’s annual Craft Brewers Conference, which had a significant decline from about 12,000 attendees in 2023 to 9,500 in 2024 and 8,000 in 2025, VinePair reported.
Number of craft breweries declines
The economic downturn in the industry was also evident in the Brewers Association’s 2025 Midyear Market Report, which showed that more breweries had closed than opened in the year ending June 2025, declining to 9,269 breweries from 9,352 in June 2024.
The brewery closing trend followed the previous year’s decline, when the number of operating craft breweries dropped nationwide to 9,680 in 2024, down from 9,747 in 2023.
Craft brewers often blame rising costs driven by inflation and tariffs, consumers’ changing attitudes toward drinking alcohol, and the high competition for the beer dollar as reasons for their economic challenges.
Some of those struggling craft breweries have needed to file for bankruptcy protection to give them breathing space to reorganize and restructure debts to stay in business.
Craft brewers who recently filed for bankruptcy
- Bosque Brewing Company, Chapter 11, Oct. 6
- Iron Hill Brewery LLC, Chapter 7, Oct. 3
- The Grange Public House & Brewery, Chapter 11, Sept. 22
- Memphis Made Brewing Company, Chapter 11, Aug. 7, 2025
- Three Weavers Brewing Company, Chapter 11, July 24
Among the craft brewers to recently file for bankruptcy were Albuquerque-based Bosque Brewing Company, which filed for Chapter 11 protection on Oct. 6; Exton, Pa.-based Iron Hill Brewery LLC, which filed for Chapter 7 bankruptcy liquidation on Oct. 3; and Mount Pleasant, Iowa-based The Grange Public House & Brewery, which filed Chapter 11 bankruptcy on Sept. 22 to restructure its debts.
Also, Memphis Made Brewing Company filed for Chapter 11 bankruptcy on Aug. 7, 2025, while Inglewood, Calif.-based Three Weavers Brewing Company filed for Chapter 11 bankruptcy protection to reorganize its business on July 24.
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Bootlegger’s Brewery files for bankruptcy protection
And now, troubled craft brewery and taproom Bootlegger’s Brewery LLC filed for Chapter 11 bankruptcy to reorganize its business and continue operating.
The Fullerton, Calif.-based craft beer brewery chain filed its Subchapter V petition in the U.S. Bankruptcy Court for the Central District of California in Santa Ana on Oct. 15, listing $1 million to $10 million in assets and liabilities in its petition, according to RK Consultants.
More bankruptcy:
- 34-year-old casual dining chain files for Chapter 11 bankruptcy
- Major seafood company files for Chapter 11 bankruptcy
- 55-year-old women’s fashion company files Chapter 11 bankruptcy
Bootlegger’s Brewery launched in 2008 after its founder Aaron Barkenhagen took an entrepreneurship class at California State University at Fullerton in 2006 and transformed his homebrewing hobby into a small business, according to the company’s website.
“The Craft Beer market is expanding daily, and while many of these breweries have amazing products, their focus isn’t always on their consumers,” the company said on its website.
“As part of the OC community, Bootlegger’s Brewery is committed to ensuring that everyone who comes into one of our tasting rooms, buys a drink or tours our brewhouse becomes more than just a consumer,” the website states.
The debtor website mentions three tasting rooms located in Fullerton, Costa Mesa, and Redlands, but the company seems to have closed the Redlands location, since the website currently only lists addresses for the Fullerton and Costa Mesa tasting rooms.
Bootlegger’s locations:
- 130 South Highland Avenue, Fullerton, CA
- 696 Randolph Avenue, Costa Mesa, CA
Bootlegger’s Brewery currently produces eight year-round beers, including El Chango Mexican-American Style Lager, Thai Tea Far Out West Coast Style India Pale Ale, Golden Chaos Belgian Style Ale, Far Out India Pale Ale, Knuckle Sandwich Double India Pale Ale, Old World Hefeweizen German Style Unfiltered Wheat Ale, Palomino Pale Ale, and Rocco Red American Red Ale.
In addition to its beer menu, the Bootlegger’s Brewery locations also offer a dining menu featuring burgers, sandwiches, wraps, tacos, melts, salads, appetizers, and desserts.
Bootlegger’s beer selection:
- El Chango Mexican-American Style Lager
- Thai Tea Far Out West Coast Style India Pale Ale
- Golden Chaos Belgian Style Ale
- Far Out India Pale Ale
- Knuckle Sandwich Double India Pale Ale
- Old World Hefeweizen German Style Unfiltered Wheat Ale
- Palomino Pale Ale
- Rocco Red American Red Ale
Related: Another troubled beer brand files for Chapter 11 bankruptcy
