A New England craft brewery, Alvarium Beer Company, has filed for Chapter 11 bankruptcy in a self-proclaimed strategic move to better its future.
On Saturday, the Connecticut-based beverage company filed for a voluntary Chapter 11 petition, according to court documents. The small-business reorganization filing was announced on the brewer’s Facebook page on Monday. Brian Bugnacki, owner of the company, wrote that despite the filing, the brewery will not be closing its doors.
“This is a strategic move to ensure Alvarium’s future. Taproom operations, brewing, coffee roasting, and each team-member’s role will continue exactly as it has while we restructure behind the scenes,” the post read.
Chapter 11 doesn’t necessarily mean closing
Neil Reid, PhD, professor at University of Toledo and craft beer researcher, told Inc. that a Chapter 11 bankruptcy filing does not necessarily signal the end of a brewery. Rather, it is a legal mechanism that allows the company to continue its operations while reorganizing finances and implementing operational changes to help improve the business’ future.
Refreshed leadership advice from CEO Stephanie Mehta
“Communities should understand that these filings often stem from broader industry pressures, such as rising production and labor costs, increased competition, market saturation, and evolving consumer preferences, rather than a lack of customer support or product quality,” Reid told Inc.
Craft breweries are facing broader industry pressure
The filing comes at a time of broader pressure being placed on U.S. craft breweries. Rising costs, changes in alcohol consumption, and increased competition are all adding strain to the industry. Many companies have faced the choice of filing for bankruptcy, shutting its doors, or both.
According to the Brewers Association, the volume of sales by craft breweries declined by four percent last year. The number of breweries open in the U.S. decreased by 2.9 percent between 2024 and 2025.