The news started to break Sunday night that Bosque Brewing had filed for Chapter 11 bankruptcy.

By Monday afternoon, the Crew was able to confirm that the brewery had indeed filed. So what does it mean?

Well, first and foremost, Bosque is not closing, not as a company nor any individual locations. A Chapter 11 filing is done to enable a business to undergo a planned financial reorganization to better repay its debts.

This is the statement that they issued to the media:

Bosque Brewing Co., has entered into a legal restructuring process to strengthen our financial foundation and support long-term success. This process is designed to allow us to continue operating our restaurants while we work with stakeholders to create a stronger path forward.
Our locations remain open, our teams remain focused, and our commitment to providing excellent hospitality and great experiences has not changed. We view this as a proactive step to ensure the future success of Bosque.
We are truly grateful for 13 years worth of continued support from our employees, guests, and patrons, and look forward to continuing to serve our communities for years to come.
Cheers,
Bosque Brewing Co.

In this case, reading through the document filed in federal court, Bosque lists estimated assets between $1 million to $10 million, and estimated liabilities between $10 million and $50 million. Those are the boxes they checked on the form, so it’s hard to say just how big their debt really is without a more precise filing, which is not necessary at this point.

How did the brewery get to this point? Well, on that we can only speculate. Most would point out that the constant run of adding more and more taprooms backfired in the end. Including Bernalillo, Bosque currently has nine locations (take note that the Bosque-owned Restoration Pizza and Smothered are listed under different LLC’s and are not part of this filing).

Others could point to the issues with packaging and distribution, from having to limit their brewing at the Bernalillo location due to wastewater issues, to the general trends against canned beer across the country. Most, if not all, of the aluminum used in cans is from outside the country and now subject to hefty tariffs. So are some of the hops and malted barley.

Whatever the causes, and there are likely more than we know, Bosque is now asking the federal bankruptcy court to approve a structured plan to pay their creditors. The initial filing does not go into detail of how that will happen, but it will be a challenge. The filing does include the 20 largest unsecured claims by creditors.

At the top of the list is Sysco, which is owed $487,881.68. The wholesale restaurant food distributor provides most (if not all) of what stocks the kitchens at eight of the Bosque locations (the Drinkery in Santa Fe does not have a kitchen).

Second on the list are two individuals whose relationship to Bosque is unknown; they are owed $400,000.

Chase Bank is owed $114,839.99, followed by New Mexico United at $86,438.63. The brewery has been a notable sponsor for the soccer team for some years now, hosting the official watch parties for away games at the different taprooms.

It’s a lot of money, and this will almost certainly not be an easy process. Nonetheless, until we are all informed otherwise, there should be no significant changes to day-to-day operations at any Bosque locations.

Again, nothing is closing, and this is not another sign of the impending doom of the entire craft beer industry. Is it surprising to see something like this happen to a craft brewery? Well, yes, but it’s another reminder that these are businesses, and if the profit-to-cost ratio turns in the wrong direction, this is what has to happen sometimes to help a business get back on its feet.

All we can do is sit back and see how this all plays out. Until then, if you are a Bosque fan, the best thing you can do is keep going to your favorite taproom and showing support by drinking the beers and ordering the food.

Got any further questions? Leave them in the comments and we will do our best to reply with the information we have at hand.

— Stoutmeister