A popular Texas craft brewery is fighting to stay afloat as financial pressures continue to mount across the beer industry. Despite filing for bankruptcy protection, the company says customers can still expect business as usual for now.
Hi Sign Brewing files for Chapter 11 bankruptcy
Austin-based Hi Sign Brewing has filed for Chapter 11 bankruptcy protection as it seeks to restructure its finances and avoid shutting down operations. Court documents show the brewery filed its petition on May 31 in the U.S. Bankruptcy Court for the Western District of Texas. The filing allows the company to reorganize its debts while continuing to operate.
According to court records, Hi Sign reported estimated liabilities between $500,000 and $1 million, while assets were listed at less than $50,000. The brewery has also accumulated approximately $90,000 in overdue utility bills, creating additional financial strain.
Brewery plans to remain open
Unlike a liquidation bankruptcy, Chapter 11 is designed to allow businesses to continue operating while restructuring their finances. Hi Sign has requested court approval to use cash collateral and may seek short-term financing to maintain day-to-day operations.
Founded by Marine Corps veteran Mark Phillippe, Hi Sign Brewing has become a recognizable name in Austin’s craft beer scene, with products sold at retailers including H-E-B and Whole Foods. The company hopes restructuring efforts will allow it to continue serving customers while navigating a difficult environment for independent brewers.
Phillippe said the company intends to keep its staff employed and views the bankruptcy process as an opportunity to build a stronger financial foundation for the future. Hearings related to the case were scheduled for June 3.
Craft beer industry faces mounting challenges
Hi Sign’s filing comes as independent breweries across the country continue to face difficult market conditions. Industry-wide challenges including rising operating costs, changing consumer preferences, increased competition, and slowing craft beer sales have contributed to a growing number of brewery bankruptcies and closures.
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