USA, DE: Iron Hill Brewery & Restaurant files for bankruptcy

Iron Hill Brewery & Restaurant filed for bankruptcy following an abrupt closure of all its locations last month, PennLive.com reported on October 8.

The Delaware-based chain, which operated a restaurant in Derry Township, filed for Chapter 7 bankruptcy under U.S. Bankruptcy Court in New Jersey.

Unlike Chapter 11, which allows a company to reorganize and remain open, Chapter 7 allows for liquidation.

According to the Philadelphia Inquirer, bankruptcy documents show Iron Hill has $125,000 in the bank and owes creditors $20 million.

The Inquirer said in recent years the company had rapidly expanded, opening restaurants in South Carolina and Georgia and increasing canned beer production.

But those efforts clearly didn’t pay off. Citing bankruptcy documents, the Inquirer reported Iron Hill corporate brought in about $242,000 in gross revenue from business operations. In contrast, the restaurants brought in $25 million.

On Sept. 25, the brewpub chain announced it had permanently closed all 16 locations.

“After many wonderful years serving our communities, all Iron Hill locations have closed,” it said. “It has been our pleasure to serve you, and we are deeply grateful for your support, friendship and loyalty over the years.”

“We sincerely hope to return in the future, and when we do, we promise to welcome you with open arms.”

In a letter sent to employees, the chain referenced bankruptcy.

“Due to ongoing financial challenges, the company has made the difficult decision to file for bankruptcy and, regrettably, will be permanently closing its doors,” Iron Hill told employees.

Iron Hill dates to 1996 when it was founded by home brewers Kevin Finn and Mark Edelson and restaurateur Kevin Davies in Newark.

It recently closed three locations in Chestnut Hill, Pennsylvania, Voorhees, New Jersey, and Newark, Delaware.

Last year, Iron Hill closed its Phoenixville and Ardmore brewpubs.