Patrons and employees alike were stunned by the abrupt closure and bankruptcy declaration of Company Brewing, previously located on 735 E. Center Street. The sudden termination of a once vibrant hub for craft beer enthusiasts highlights the uncertain nature of the food and beverage industry.
Company Brewing cited climbing operational costs and reduced patronage as main drivers for the decision. Despite attempts to revive the failing venture, the financial burden was overwhelming, resulting in bankruptcy.
The building, formerly teeming with life, now lies quiet. The local community spectates with a mix of sorrow and uncertainty, pondering the effects of this closure on the area’s lively brewery culture.
The brewing company’s owner, George Bregar, filed for Chapter 7 bankruptcy on May 31, revealing company assets worth $339,048. This move shed light on the firm’s grave financial plight.
Company Brewing’s surprising bankruptcy fallout
The bankruptcy documents disclosed liabilities nearing $1.4 million, emphasizing the extent of debts Bregar faced and leading to the decision to halt operations and liquidate the company.
A trustee will oversee the liquidation of the company’s assets to repay creditors, highlighting the unstable nature of the brewing industry, particularly for small-scale breweries.
The company’s financial woes were compounded by a debt amounting to $1,809,644. This incorporated an Economic Injury Disaster Loan due to the COVID-19 pandemic, outstanding invoices to Byline Bank in Chicago, a loan from Ralph Stayer III, and other unresolved debts.
The bankruptcy necessitates the sale of nonexempt assets, with the income being divided among around 30 creditors. This is a required process to fulfill the debts while ensuring fairness among the creditors.
The unexpected halt in operations created shockwaves among employees, the community, and stakeholders. Local entities have rallied to offer support. The abrupt change has put an emphasis on open communication to manage the significant disruption’s aftermath.
Despite the financial challenges, Company Brewing celebrated its ninth anniversary with a community block party. They are persevering through the crisis by selling canned beers through an online store, allowing customers to pick up orders via a drive-through service at the closed down location.
