Trove Brewing files Chapter 11 bankruptcy, seeks partners

Launching a craft brewery in an environment of high interest rates, rising inflation and high ingredients costs can jeopardize a beer company's odds of succeeding from the beginning.

Combine those factors with declining alcohol consumption rates and craft breweries, such as Trove Brewing, face huge obstacles for success. Trove has not publicly cited declining alcohol consumption as a reason for its bankruptcy filing, but industrywide declines have created additional pressure on craft brewers.

Alcohol consumption in the U.S. hit a record low in 2025, according to the Gallup poll, with only 54% of Americans reporting that they drink alcohol. Consumption had fallen from 62% of adults in 2023 to 58% in 2024, before falling to a record low last year.

Trove Brewing files Chapter 11 bankruptcy

A combination of these factors has contributed to struggling craft brewery Trove Brewing LLC filing for Chapter 11 bankruptcy protection, seeking to reorganize its business to generate more revenue, after launching as inflation was rising and the cost of doing business was also increasing.

The Burnsville, Minn.-based beer brand filed its Subchapter V petition, case No. 26-31864, in the U.S. Bankruptcy Court for the District of Minnesota on June 3, listing over $99,000 in assets and over $632,000 in liabilities, according to court papers.

Trove Brewing's largest creditors include Choice Bank, owed $615,000; Royal Credit Union, owed $12,270; and North Star Leasing, owed $4,800, court papers said.

The debtor won approval in bankruptcy court to use its cash collateral, pay prepetition salaries, wages, and benefits, according to PacerMonitor.

Brewery continues operating

The brewery and taproom continue operating, as the brewer's website has scheduled Father's Day Specials on June 21 and food truck service through June 26.

Trove Brewery is pursuing contract-brewing agreements and a food partner to increase company revenue, and it has trimmed operations to cut costs, according to Hoodline.

The brewer is hoping that a new food partner will generate more foot traffic for the taproom to generate more sales.

The brewery was established in 2023 by California transplants Jeffrey and Angela Crane. Jeffrey got his start in the craft brewing industry in 1998 working at Pyramid Alehouse and Brewery in Berkeley, Calif., until moving to Minnesota in 2011 to be closer to Angela's family.

Jeffrey first worked as cellarman brewer and floor manager at Granite City Brewery and Restaurant in Minnesota and was promoted to regional brewer. He polished his skills until the couple decided the time was right to fulfill their dream of opening their own brewery.

Craft breweries have faced rising interest rates, labor costs, and ingredients costs that have buried beer companies in debt.

Rising costs impact beer prices

"Raw material costs have emerged as a significant constraint in the North American craft beer market, with substantial increases in the prices of essential ingredients," according to a 2026 North American Craft Beer Market Report by Mordor Intelligence.

"The impact of these cost increases has been particularly severe on production economics, forcing breweries to revise their pricing strategies and operational models," the report said.

The brewery produces award-winning beers, including Trove's The Oktroverfest, which won a No. 1 Marzen Gold Award from Untappd in 2024, and The Heckler Hefeweizen, which won a No. 2 Wheat Beer Silver Award from Untappd also in 2024, according to its website

Trove Brewing, which launched its operations in 2023, currently brews 10 varieties of beers, including The Sideshow Kolsch, The Oddity West Coast IPA, The Goon West Coast IPA, The In-Between Cherry Vanilla Porter, The Curtain Call Cream Ale, The Blue Note Blueberry Cream Ale, The Stooge Hazy IPA, The Heckler Hefeweizen, The Sun Rush Sour, and Berliner Weisse Non-fruited Sour.

The brewer also offers hard seltzer and non-alcoholic seltzer.

3rd Level filed Chapter 7 bankruptcy

Another craft brewery, 3rd Level Brewing LLC, in Round Rock, Texas, had a more difficult time than Trove and was forced to file for Chapter 7 bankruptcy liquidation on April 1, 2026.

3rd Level had been facing financial difficulties, and its owner Clint Bradley concluded in October 2025 that the business would need to file for bankruptcy.

"I thought for sure we would not be open in December," Bradley told TheStreet's Kirk O'Neil at the time.

Bradley said 3rd Level would continue operating until it is no longer allowed to.

"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."

Beer company finally closes

But that day came on April 17, 2026, when Bradley announced on social media that the bankruptcy court had ruled that it had to stop operating, according to Community Impact.

"Unfortunate news today. We are closed. We are done. It's finito. We got a call this morning from the whole bankruptcy thing and, yeah, that's it, they said stop operating, close doors," Community Impact reported.

Trove Brewing's beer awards:

• The Oktroverfest, UntappdNo. 1 Marzen Gold Award, 2024.
• The Heckler Hefeweizen, UntappdNo. 2 Wheat Beer Silver Award, 2024.Source: Trove Brewing.

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This story was originally published June 18, 2026 at 3:07 PM.