Popular Craft Beer Brand Files For Chapter 11 Bankruptcy

Alamo Beer Company, a well-known craft beer brand based in San Antonio, Texas, has filed for Chapter 11 bankruptcy. The company, which produces 7,500 barrels of beer annually, is operating at less than 20 percent of its brewing capacity despite having the ability to produce up to 40,000 barrels each year.

Eugene Simor, the founder and owner of Alamo, stated that the plan is to "recapitalize, restructure and return stronger." Alamo has been brewing since 2003 and has expanded in recent years through acquisitions, including the purchase of Austin-based ShotGun Seltzer and a merger with local brand Viva Beer in 2023.

The craft beer industry has been facing challenges as customers cut back on spending, and Alamo is not alone in its struggles. Other alcohol sellers in San Antonio, such as Weathered Souls, Busted Sandal, and Second Pitch, have closed locations in the past year. Alamo's court filings show assets and liabilities between $1 million and $10 million, and the company has already sold parts of its real estate portfolio to stay afloat.

Simor acknowledged that growth in the craft beer sector has slowed, and the company is also looking to sell a parking lot adjacent to its flagship store. The challenges facing Alamo are part of a larger trend in the alcohol industry, where companies are dealing with increasing product costs and reduced consumer spending.

Alamo Beer Company hopes to emerge from bankruptcy stronger, as it navigates these industry headwinds.