Higher costs for raw materials, rising labor and rent costs, as well as the struggling American consumer have led to numerous breweries and distilleries closing.
The craft beer market continued its historic decline in 2025, with a 5.1% decrease in production and 2.9% contraction in U.S. breweries, according to the Brewers Association’s data.
You can blame inflation and economy for some of the shutdowns, but another trend has hurt companies like Goodwood Brewing & Spirits, which filed for Chapter 7 bankruptcy on June 22, according to court filings on PacerMonitor, — Americans are drinking less.
“U.S. total beverage alcohol (TBA) volumes contracted by -5% in 2025, as economic pressures continued to weigh on consumers and to shape their drinking behavior,” according to preliminary figures from IWSR’s US Navigator, which provides a monthly read of total-market category volumes across all 50 US states.”
Declines were seen across all major categories, with beer volumes down -5%, wine decreasing by -6% and spirits falling by -4%. However, ready-to-drink beverages (RTDs), which were down by only -1%, continued to gain market share.
“Cost is now the most common driver of moderation in the market, with 31% of US drinkers citing this as a reason for drinking less,” according to IWSR Bevtrac consumer research.
Goodwood Brewing & Spirits faces a challenging market
Goodwood Brewing & Spirits faced a number of operational challenges beyond the rising costs that have impacted most, if not all, American business operators.
“Consumers are becoming more selective about where they allocate their alcohol spending, increasingly evaluating purchases based on their own price-to-quality ratio,” says Marten Lodewijks, IWSR Managing Director. “Rather than broadly trading down, drinkers are choosing to pay more only when a product clearly justifies its price.”
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On top of that, some Americans have simply stopped drinking.
“The percentage of U.S. adults who say they consume alcohol has fallen to 54%, the lowest by one percentage point in Gallup’s nearly 90-year trend. This coincides with a growing belief among Americans that moderate alcohol consumption is bad for one’s health, now the majority view for the first time,” according to a Gallup Poll.
Gallup has tracked Americans’ drinking behavior since 1939 and their views of the health implications of moderate drinking since 2001. The latest results are from Gallup’s annual Consumption Habits survey, conducted July 7-21.
Lawsuits came before Goodwood Brewing & Spirits filed Chapter 7
Goodwood Brewing’s Chapter 7 bankruptcy filing comes not long after it closed all its taprooms, with the company facing a number of lawsuits, and millions in alleged debt.
“The company closed its Owensboro restaurant and taproom at 101 Frederica St. on April 26, one day before a Daviess Circuit Court judge entered a nearly $100,000 default judgment against its owners over unpaid rent. Judge David Payne awarded landlord Entertainment at the Enclave $99,604.96, plus court and attorney fees, after the landlord alleged more than $120,000 in unpaid rent dating back to November,” according to Louisville Business First.
Earlier this spring, Louisville Business First also reported that Goodwood Brewing & Spirits was undergoing an ownership transition while facing multiple lawsuits alleging nonpayment of rent, services and taxes.
The company also owes the IRS more than $400,000 in back taxes, and has rent issues at another location, the Lexington Herald-Leader reported.
“In Jefferson Circuit Court, Goodwood is being sued by its landlord. According to a lawsuit filed on March 6, Goodwood owes about $225,000 in unpaid rent for January, February and March as well as unpaid property taxes for the Whiskey Row location,” the paper added.
Other cases reported by the Herald Leader include:
- A separate lawsuit filed in October in Jefferson Circuit Court alleges that Goodwood Brewing Co. owes more than $125,000 to Sysco Louisville.
- Creation Gardens, another vendor, also sued in Jefferson Circuit Court in January 2025, alleging Goodwood Brewing owes them $54,000. The case is pending.
Under Chapter 7, a trustee is generally appointed to liquidate assets and distribute proceeds to creditors according to bankruptcy law.
Goodwood Brewing & Spirits Chapter 7 filing basic facts
- Court: Kentucky Western Bankruptcy Court
- Case #: 3:26-bk-31659
- Debts and assets: The filing shows the company estimates between $1 million and $10 million in both assets and liabilities,
- Creditors: Between 100 and 199 creditors.
- Petition signee: Goodwood’s co-founder and CEO Ted Mitzlaff signed the voluntary bankruptcy petition.
- Judge: Mary Elisabeth Naumann
- Filed: June 22, 2026
- Creditor meeting: July 20, 2026
Source: PacerMonitor
No information on debts, assets, and creditors has been released publicly yet. The company’s website has been taken down and its Facebook page has not been updated since March.
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A number of breweries have filed Chapter 7 in 2026
Fledgling Texas craft brewery 3rd Level Brewing LLC filed for Chapter 7 bankruptcy in April, blaming financial distress and industry headwinds,
But the brewery plans to keep operating until it is no longer allowed to, owner Clint Bradley told TheStreet’s Kirk O’Neil.
“We’ll see how this plays out,” Bradley said. “We’re going to operate as normal until someone tells me I have to stop operating.”
The company appears to have lost that fight as local media reports show that it has closed down and Yelp verifies that.
In February, Baltimore craft brewery, The Brewer’s Art, filed for Chapter 7 bankruptcy to liquidate its assets after suddenly shutting down its business, TheStreet reported.
Old Line Brewers LLC filed its petition in the U.S. Bankruptcy Court for the District of Maryland on Feb. 13, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Public Access to Court Electronic Records as reported by Bankruptcy Observer.
In that same month, heavy-metal-themed beer brand Magic City Brewing Co. LLC filed for Chapter 7 bankruptcy to liquidate its business after closing its brewery and two taprooms, according to TheStreet.
The Akron, Ohio-based craft brewer closed its taproom at 1662 Merriman Road before Feb. 3, when the beer company said it would also close its flagship brewery and taproom at 2727 Manchester Road on Feb. 14, the Akron Beacon Journal reported.
RTMNexus CEO Dominick Miserandino thinks the closures aren’t simply because Americans drink less, or solely due to the financial challenges facing businesses and their customers.
“I think it’s a combination of all of the above. Americans have switched from brewery to the likes of White Claw and other lighter drinks as well as watching the budget. You’re not gonna try specialty things,” he told TheStreet.
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