Crosstown Brewing Co. filed for Chapter 7 bankruptcy on Wednesday, Oct. 21, just four days after the midtown Memphis brewery closed its doors following more than eight years in business.
According to the bankruptcy petition, filed in the U.S. Bankruptcy Court for the Western District of Tennessee, Crosstown reported nearly $2.5 million in outstanding debts while estimating its assets at less than $50,000.
The filing listed approximately $1.33 million in secured debts and another $1.17 million in unsecured debts. The brewery reported having between 50 and 99 creditors.
Unlike Chapter 11 bankruptcy, which allows businesses to reorganize their debts and potentially continue operating, Chapter 7 involves the liquidation of a company’s assets to repay creditors. A court-appointed trustee oversees the process, with proceeds distributed according to bankruptcy law.
Financial challenges facing craft breweries
Crosstown’s abrupt closure came as a surprise to many in Memphis, given the brewery’s prominent location next to Crosstown Concourse and the widespread availability of its beers in stores, bars and restaurants throughout the region.
Some online commenters speculated that Crosstown Concourse’s recent decision to charge for parking contributed to the closure. But the bankruptcy filing reveals the extent of the brewery’s financial difficulties, with substantial debts owed to banks, lenders and suppliers.
Those financial obligations underscore the challenges facing craft breweries as they contend with rising operating costs, changing consumer drinking habits and an increasingly competitive market.
Similar pressures have contributed to hundreds of brewery closures nationwide in recent years.
Among them was Memphis Made Brewing Co., which closed earlier this year after more than a decade in business. The brewery filed for bankruptcy, and its assets and intellectual property were sold at auction. Soul & Spirits Brewery acquired the Memphis Made brand and has continued producing its beers, including Fireside Amber Ale.
That raises a question some Memphis beer drinkers have already asked: Could Crosstown’s brands eventually find a new home under another brewery? For now, however, there are no indications that Crosstown’s beers will continue to be produced.
Crosstown’s creditors
Among the largest creditors identified in Crosstown’s bankruptcy filing are Renasant Bank, which is owed approximately $796,500, and the U.S. Small Business Administration, which is listed with a $327,200 Economic Injury Disaster Loan.
RQM Capital Partners is listed with approximately $744,500 in combined secured and unsecured claims. The filing also identifies approximately $100,600 associated with a lease involving Crosstown Master Tenant LLC.
Other creditors include numerous vendors and suppliers, such as Victory Packaging ($37,800), Singer H & R ($27,012), NexAir ($19,622), Country Malt Group ($19,390) and Keg Logistics ($11,220).
Crosstown indicated in its filing that it does not expect funds to be available to repay unsecured creditors after administrative expenses are paid.
Crosstown’s last call follows more than eight years in Memphis
Founded by homebrewers Will Goodwin and Clark Ortkiese in 2018, Crosstown became a fixture of Memphis’ growing craft beer scene, producing beers that ranged from Traffic IPA and Siren Blonde Ale to Vision Board Mixed Berry Sour and a Bourbon Barrel-Aged Imperial Stout called Boris.
The brewery distributed its beers across West Tennessee, Middle Tennessee, North Mississippi, Central Mississippi, Eastern Arkansas and Alabama.
In 2024, Crosstown expanded its taproom with a full kitchen, offering a broader food menu alongside its beers. The brewery also diversified its beverage offerings with the introduction of Orbit, a line of THC-infused seltzers. Both moves represented efforts to generate additional revenue beyond traditional beer sales.
Ortkiese died in July 2025 following a battle with cancer.
Crosstown closed its taproom on Saturday, Oct. 17, with its annual Crosstoberfest celebration serving as a farewell to the brewery.
