Award-winning beer brand files Chapter 7 bankruptcy to liquidate

The craft brewery sector has been struggling over the last two years, with brewers closing down businesses and filing for Chapter 11 and Chapter 7 bankruptcy across the nation.

Last year was the first year since 2005 that the overall number of operating craft breweries declined nationwide to 9,680, down from 9,747 in 2023.

New brewery openings declined for the fourth consecutive year, with 434 new breweries opening and 501 closing.

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American craft brewers produced 23.1 million barrels of beer in 2024 for a 4% decrease compared to 2023, according to a report from the Brewers Association.

Related: Popular beer brand files Chapter 11 bankruptcy

The craft beer industry’s share of the beer market volume was flat at 13.3%, the same as in 2023, while the overall beer market declined by 1.2% in volume.

All of that bad news carried over from 2024 to 2025, as several breweries filed for bankruptcy.

San Antonio craft brewery Alamo Beer Company LLC filed for Chapter 11 bankruptcy protection on Feb. 3, 2025, to restructure its debt obligations and continue as a going concern.

San Antonio breweries shut down

The city’s craft beer industry had been having financial problems last year, as the city’s craft brewers Weathered Souls Brewing Co. and Busted Sandal Brewing Co. shut down in fall 2024, and Freetail Brewing Co. ended its beer distribution operations.

Award-winning La Vista, Neb., beer brand Nebraska Brewing Company filed for Chapter 11 bankruptcy on April 28, 2025, to implement a strategic restructuring, facing uncertain times and economic and supply chain issues, according to a company Facebook post.

The craft brewery industry is also having severe problems in North Carolina, as multiple brewers filed for bankruptcy in the Tar Heel State in April.

Cary, N.C.-based brewery, Cotton House Craft Brewers, on April 8 filed for Chapter 11 bankruptcy to restructure its business after facing significant financial strains over the last two years.

Another Cary-based craft brewery Brüeprint Brewing Company on April 9 filed for Chapter 7 protection and will likely close down operations and liquidate its assets.

The Duck-Rabbit files for Chapter 7 liquidation

And now, award-winning craft brewery The Duck-Rabbit Craft Brewery filed for Chapter 7 bankruptcy protection to liquidate its assets and shut down its business permanently.

Related: Popular beer brands retailer closes locations

The Farmville, N.C., debtor filed its petition in the U.S. Bankruptcy Court for the Eastern District of North Carolina on April 29, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to BankruptcyObserver.

More closings:

• Popular retail chain to close unprofitable store locations
• Bankrupt retail chain unloads store leases, key asset
• Popular discount retailer files bankruptcy, closes all stores

The craft brewery’s owner Paul Philippon revealed in a Facebook post that the craft brewery would close down after a weekend of discounts on beer and merchandise on April 26.

“It’s hard for me to let you know that this will be Duck-Rabbit’s last weekend,” Philippon said in the post. “I know that this is the right decision, but I still can’t help but know that I’ll miss you and everything Duck-Rabbit.

“Thanks for your support and your friendship and for letting me do my thing here for so long!” Philippon said.

The craft brewery opened in 2004 and brewed several beers, including Amber Ale, Baltic Porter, Barleywine Ale, Brown Ale, Duck-Rabbator Dopplebock, Hoppy Bunny ABA, Marzen, and Milk Stout.

Duck-Rabbit was distributed in nine states, including Florida, Georgia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.

The brewery poured Duck-Rabbit beers in its taproom and offered tours to the public.

Related: Popular beer brand shuts down brewery, lays off employees

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