St. Louis-based Urban Chestnut Brewing Co. has staved off potential closure with the approval of its sale out of bankruptcy for $2.55 million. The buyer, local company Keg Holdings LLC, led by Brian Travers, seeks to revive the craft brewery that has been struggling to keep afloat since its Chapter 11 filing in September. According to KSDK, U.S. Bankruptcy Court Judge Brian Walsh approved the sale yesterday. The local investor is based in St. Louis and has seemingly provided a lifeline to the popular brewery, which listed debts of at least $7.4 million, including $3.6 million owed to Midland States Bank.
St. Louis Today reported that Urban Chestnut President David Wolfe expressed in filed documents that, “Given the refinancing and sale efforts, I believe the sale to Keg Holdings represents the best offer for the assets of UCBC." The company's financial distress reflects a downward trend in the craft beer industry, which has seen challenges due to the effects of the COVID-19 pandemic and changes in consumer preferences. The industry reportedly suffered a 2% market decline nationwide in the first half of 2024, with the latter half suggesting a further decline, according to the Brewers Association.
The decision to sell Urban Chestnut to Keg Holdings follows deliberations of alternative paths for the brewery, including a potential merger with Schlafly Brewery or a purchase by beer industry giant Anheuser-Busch Inbev. The deals with these entities never came to fruition, leaving the door open for Keg Holdings to step in with their $2.55 million offer. These details were shared by First Alert 4, highlighting the brewery’s exhaustive search for a viable solution to its monetary woes.
