When Anchor Brewing closed in July, it marked a symbolic change in the craft brewery business. That company, which had 127 years of history sort of embodied the spirit of upstart breweries offering alternatives to the big beer brands.

It was a very successful company that achieved national recognition and distribution which hit a brick wall during the Covid pandemic. Sales slowed, as bars were closed during the lockdown period and that created a financial hole the company could not escape.

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Anchor Brewing’s future remains unclear as the company has attracted a lot of interest but has not yet been purchased. It’s situation, however, is not unique as pandemic-related woes forced a number of breweries and craft beer brand to shut down.

It was kind of a perfect storm where companies that made much of their revenue from on-site sales saw that business dry up. That created a situation where it was impossible to not lose money and that created debt that many breweries simply could not recover from.

Increased debt loads made making changes hard and lowered demand drove many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing into bankruptcy.

The hits just keep coming as another regional favorite, Fargo Brewing, has filed for Chapter 11 bankruptcy protection.

Fargo Brewing has a deep community connection

Fargo Brewing not only brew beer, it also hosts relatively big-name bands. The company was built around beer, but its outdoor concert venue has hosted acts including Violent Femmes, rapper Prof, and country singer Shakey Graves.

“Since its founding in 2010, Fargo Brewing has been on a mission to bring our community together through the art of craft beer. We understand that you are more than just beer enthusiasts; you are the heart and soul of Fargo, and we are here to celebrate you,” the company shares on its website.

The company has also made a point of staying connected to its community.

“As locals ourselves, we share your love of classic beer and celebrate the uniqueness of our city. That’s why we put our heart into every batch, meticulously crafting beers that resonate with your diverse tastes. Whether you’re a hop-head seeking bold flavors or a newcomer eager to explore approachable styles, we have specifically for you,” it posted.

The company has a wide variety of beers on tap at its brewery, as well as at select other locations. Its beers range from its Fargo Lager, a very traditional beer to more exotic offerings including its Blood Orange Wood Chipper IPA and its Nitro Stone’s Throw Scottish Ale.

Fargo Brewing files Chapter 11 bankruptcy

Fargo Brewing has filed for Chapter 11 bankruptcy protection under Subchapter V of the bankruptcy code. That means its debts are less than $7.5 million. The company also said that it expects to have funds available to pay unsecured creditors.

The company has not shared a financing or turnaround plan but it did share with the court that it has some assets that will lose value if over time. That likely refers to perishable goods used in making beer. 

Fargo Brewing reported assets in the range of $100-500,000. Its liabilities are in the $1-10 million range (based on the checked box on the bankruptcy form), but must be under $7.5 million based on it filing for Chapter 11 bankruptcy under Subchapter V.

The brewery appears to still be operational and events are listed on its website, with tickets still being sold for concerts well into July.