37-year-old liquor and beer brand files Chapter 7 bankruptcy, liquidating

When a company files Chapter 7 bankruptcy, it means the brand will be liquidated.

That could result in a new beginning, if a new business or operator buys the brand and revives it. In theory, that can happen, but in many cases, the company's assets will be auctioned off.

One business might buy its equipment, while another may purchase its brand name. Its intellectual property may even be split up between multiple buyers.

A Chapter 7 bankruptcy is definitive, and it's usually a quick process.

"Unlike Chapter 11 bankruptcy, Chapter 7 doesn't provide a mechanism for a corporation or LLC to continue operating. Chapter 7 is a quick bankruptcy chapter designed for people and companies without an income source to pay debt. The primary function of Chapter 7 is to liquidate assets and pay creditors, which is why filing under Chapter 7 will shut down the company," Nolo.com reported.

A company files Chapter 7 bankruptcy when it has no other options.

"When a debtor becomes insolvent and the bankruptcy proceeding begins, the debtor will either liquidate its assets or reorganize its debts. The liquidation route is governed by Chapter 7 of the Bankruptcy Code," Cornell University's Legal Information Institute shared.

"In a liquidation, the assets of the debtor, usually a corporation, are sold piecemeal or as a going concern in order to satisfy the debtor’s creditors."

A Chapter 7 bankruptcy is legally a definitive end, and that's what has happened to Rogue Ales & Spirits. The company, which had suspended operations earlier this month, has made its shutdown official by formally filing for Chapter 7 bankruptcy on Nov. 24.

Rogue Ales & Spirits has already closed

TheStreet's Kirk O'Neil has been following Rogue's story since the the first signs of trouble.

Iconic craft brewery and distillery Rogue Ales & Spirits abruptly shut down all operations on Nov. 14, including its six Oregon brewpub locations, The Lincoln Chronicle first reported.

The Newport, Ore.-based brewery and distillery, which features 13 beers on its website, faced financial distress, having fallen behind on lease payments, owing $545,000 to the Port of Newport and about $30,000 in taxes to Lincoln County, Ore.

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With its Chapter 7 bankruptcy filing, new details have emerged on the company's financial situation.

"Initial reports on the closure said the brewery was buckling under the weight of enormous debts to Lincoln County and the Port of Newport. Overall, the brewery and its subsidiaries, Rogue River Brewing Company and Yaquina Bay Beverage Company, owe $17 million in liabilities and hold $5.6 million in assets. The liabilities include $10 million in unliquidated, contested debt relating to a legal claim, leaving $7 million in uncontested debt," Willamette Week reported.

Rogue Ales & Spirits Chapter 7 bankruptcy facts

• On November 14, 2025, Rogue abruptly closed all its brewery, pub, and restaurant operations, including its flagship production facility in Newport (as well as other pubs statewide). Source: The Astorian

• On November 24, 2025, the parent company Oregon Brewing Company (doing business as Rogue Ales & Spirits) filed a voluntary Chapter 7 petition in U.S. Bankruptcy Court (District of Oregon, case no. 3:25‑bk‑33945). Source: Inforuptcy

• The bankruptcy filing covers Rogue Ales plus its subsidiaries (notably Rogue River Brewing Company and Yaquina Bay Beverage Company). Source: Inforuptcy

• Reported liabilities exceed $16.7 million

• Assets are reported at $4.9 million.

• Among the assets listed: roughly 1,300 barrels of aging whiskey (valued at $2.8 million), about $1 million in hops/grain/materials, $614,000 in packaging and labels, and $692,000 in bottled/labeled beverages.

• The debt structure includes a wide range of creditors, from small suppliers owed as little as $20 to larger farming entities owed more than $1.3 million. Source: Lincoln Chronicle

• Significant specific liabilities include $594,000 in unpaid rent to the Port of Newport, $918,000 in overdue property taxes to Lincoln County, plus other debts including unsecured loans reportedly from one of the original founders.

• A major additional liability is a contested “dram‑shop negligence” claim tied to a 2022 fatal DUI crash. This claim alone is listed at up to $10 million. Source: Willamette Week

• The bankruptcy is a liquidation (not a restructuring). Assets are to be sold off — the filing notes many will likely be sold for “pennies on the dollar.” Source: Lincoln Chronicle

• As a result of the closure and bankruptcy, staff and employees were laid off. The shutdown surprised many. Employees reported being told about the closure the same morning operations ceased. Source: The Astorian

Related: Fast-fashion chain closing 200 stores, ending physical brand

This story was originally published by TheStreet on Nov 26, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.