Bosque Brewing files for Chapter 11 bankruptcy amid mounting debt

One of New Mexico’s most well-known brewers is seeking Chapter 11 protection after accruing millions in liabilities.

Bosque Brewing Co. LLC initiated a Chapter 11 bankruptcy filing with the United States Bankruptcy Court for the District of New Mexico last week. The company plans to continue serving pints while it reorganizes its finances through a court-approved reorganization plan, according to a statement Bosque spokesperson Natasha Souther provided to the Journal.

“This process is designed to allow us to continue operating our restaurants while we work with stakeholders to create a stronger path forward,” the statement said. “Our locations remain open, our teams remain focused, and our commitment to providing excellent hospitality and great experiences has not changed.”

Bosque Brewing Co., founded in 2012, is one of New Mexico’s largest brewers, with a footprint that spans nearly a dozen locations across the state, including a brewery and several taprooms and restaurants. The brewery has a large market reach, selling its products in stores across New Mexico and in El Paso. The company also owns Restoration Pizza.

The Albuquerque-based company lists $10 million to $50 million in liabilities compared with less than $10 million in assets, according to the petition.

The bankruptcy filing comes just weeks after Bosque announced a new partnership with Marble Brewery, which is handling the brewing, production and distribution of Bosque’s core beers.

Marble co-owner Jarrett Babincsak said Bosque’s restructuring will not impact the two breweries’ partnership.

“We will continue to brew the beers we’ve agreed to make, and also help them as partners and friends in any way we can,” Babincsak said. “We believe Bosque will come out the other side of this process better positioned for the future.”

Before the partnership, Bosque was producing core beers in Colorado for several months due to wastewater constraints at its Bosque North brewing facility in Bernalillo.

The two Albuquerque brewers said the partnership would concentrate dollars and jobs inside New Mexico, support creative ventures and more specialty beers, make Bosque’s beer more accessible, save costs and time for Bosque and create opportunities for collaboration.

Babincsak said such partnerships are taking place more and more in response to a contraction felt across the craft brewery industry.

Craft beer volume sales dropped by roughly 4% from 2023 to 2024, which was also the first year since 2005 that the number of breweries closing outpaced those opening, according to the Brewers Association, which represents small and independent brewers. Overall, U.S. beer production and imports were also down 1% last year, association data says.

In recent weeks, Albuquerque has seen several local brewers shutter their doors, including Cazuela’s Mexican Grill and Brewery, Voodoo Girl Pies & Pints and Sobremesa.

Bosque initiated the Chapter 11 filing to avoid that fate. Chapter 11 bankruptcy allows a company to reorganize its finances while remaining operational.

“We view this as a proactive step to ensure the future success of Bosque,” the company said in a statement.

In its Oct. 6 filing, Bosque Brewing lists Sysco, the restaurant supply company, as its largest unsecured creditor with a vendor invoice of $487,881.

Other large unsecured creditors include Richard and Michelle Dowdican of Los Ranchos for $400,000 and Todd Schumacher of Albuquerque for $113,500.

Bosque lists credit card debt of $114,839 owed to Chase Bank. It also owes about $86,000 to New Mexico United through a sponsorship agreement. The petition lists about 190 unsecured creditors in all.

The debtor, Bosque, will ultimately propose a court-approved plan to repay creditors without liquidating assets. The debtor’s reorganization plan must be accepted by a judge and the majority of its creditors.

“We are truly grateful for 13 years’ worth of continued support from our employees, guests, and patrons, and look forward to continuing to serve our communities for years to come,” the company said.