Crafting financial solution
Rivertowne Brewing files for Chapter 11 bankruptcy, but still looks to innovate
Westmoreland County-based brewer Christian Fyke is ramping up production in response to increased demand driven by a new product line, but he also needs to sort through his company’s finances.
Rivertowne Brewing of Export and its four restaurants filed for protection from creditors May 4 under Chapter 11 of the U.S. Bankruptcy Code, in part due to intense competition in the craft beer industry,
It hasn’t stopped the company from working to innovate.
Rivertowne’s team spent the past two years reformulating recipes, updating labeling and packaging for the brewer’s seven core beers plus draft and seasonal varieties, which were rolled out in April.
Orders have “far surpassed our expectations,” said Mr. Fyke, president of Rivertowne. “We have an exciting story to tell.
“You don’t generally hear someone lean over and say, what does that Budweiser taste like, but in a craft brewing environment, it’s a pretty common question,” he said. “We’ve been happy to be part of that.”
But the industry has grown dramatically and become more competitive since Mr. Fyke, his wife, Lisa, and relatives founded the company. When Rivertowne was founded with a bar in Verona in 2002, there were fewer than 1,000 craft brewers nationwide, Mr. Fyke said. There are 6,000 today, including several new brewers in the Pittsburgh area.
“We’ve tackled a lot,” he said. “We’re educating the customer base of Pittsburgh.”
The company’s Export brewery and restaurants in Verona, North Huntingdon, Monroeville and North Shore will continue to operate and the company’s 140 employees will continue to be paid while the company reorganizes financially, Mr. Fyke said.
A turnaround plan is due to be filed with the court by September.