Alamo Beer Company, one of San Antonio’s most well-known craft breweries, has filed for Chapter 11 bankruptcy in the Western District of Texas.
Founded by Eugene Simor in 1997, the company began showing signs of struggles in the fall. Pointing to rising operational costs and declining sales, Simor told the Express-News that, while the brewery has the capacity to produce 40,000 barrels annually, it was only producing about 7,600 barrels — less than 20% of its potential.
Chapter 11 bankruptcy allows a company to reorganize its finances and attempt to return to profitability while keeping business operations running. The filing reveals that the company’s estimated value and potential liabilities are both in the range of $1 million up to $10 million.
Alamo Beer has taken steps to stay afloat, including a merger with local brewery Viva Beer and acquiring Austin-based ShotGun Seltzer. The company has also explored selling part of its Eastside property, including a two-acre parking lot listed for $1.5 million.
Alamo Beer’s bankruptcy filing is the latest sign of trouble in San Antonio’s brewing scene, where several breweries — including Weathered Souls, Busted Sandal and Second Pitch — have closed due to financial challenges.
The industry has faced rising labor and ingredient costs, along with shifts in consumer habits and increasing competition. Overall, U.S. beer production and imports were down 5% in 2023, while craft brewer volume sales declined by 1%. Data from the National Beer Wholesalers Association shows the craft beer trade in the U.S. was dramatically impacted by the pandemic, with sales for the majority of breweries plummeting.
Despite this, Simor remains hopeful.
“The plan is to recapitalize, restructure, and return stronger,” he told the San Antonio Business Journal.
