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Bankruptcy May Be Your Option

Brewery cites location as Chapter 7 bankruptcy factor

There are many factors that go into the overall success of a company. Even those with good ideas, quality products and creative minds intent on success struggle due to factors that are sometimes beyond their control. For example, some businesses in Oklahoma may struggle as a result of increased competition. A brewery in another state cites competition as one of the reasons behind its recent Chapter 7 bankruptcy filing.

The Dutch Girl Brewery opened in July 2015. A representative for the company claims that it created a quality product, even winning a bronze medal for its craft beer. Unfortunately, despite its quality product, the company began to struggle. It abruptly announced on a social media posting that it would be closing in March.

The location was reportedly a factor; when it first opened, being out-of-the-way was not a major factor because there were few other options. However, more craft breweries opened, and the increased competition meant consumers were less willing to travel. Court filings indicate that the company has approximately $333,000 in debt but only $157,000 in assets. The owners are hopeful to meet their obligations to as many of their creditors -- including unsecured creditors -- as possible through the process. Creditors include the utility company, employees and service providers, among others.

Some companies in Oklahoma are familiar with the potential consequences of increased competition. Often, a company can face insurmountable financial obstacles. In such a situation, a Chapter 7 bankruptcy filing may be the best option to manage such debt. A bankruptcy attorney can help a business understand the available options and choose the most appropriate one.

Source: mlive.com, "Bad location caused West Michigan brewery bankruptcy, attorney says", Justine McGuire, May 3, 2017

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