One of Minnesota's best-known breweries filed for bankruptcy protection this week as Fair State Brewing Cooperative seeks a way through a mountain of debt, the Star Tribune reported. CEO Evan Sallee said the doors will remain open at Fair State's northeast Minneapolis taproom in the meantime. "From a consumer standpoint, nothing should change," he said. "This is the process that will enable us to keep going." The chapter 11 filing seeks to reorganize the cooperative's liabilities, which include $2.5 million in secured claims. A successful resolution will keep the brewery in business; the alternative would be chapter 7 bankruptcy, in which assets are sold to pay creditors. The cooperative reported $3 million in assets and $5.1 million in total liabilities, including debts to more than 100 creditors that especially piled up during the pandemic. "We've been moving heaven and earth to get out from under it," Sallee said. "It has not been my favorite day. But we have a solid plan to get through it, and I don't think we need to make any drastic pivots." Fair State made history in 2020 when it became the first unionized craft brewery in the nation. It also became a pioneer in the THC beverage market when opening Chill State Collective last year, a distribution center and co-manufacturing hub for several brands. Fair State saw revenue jump from $4.5 million in 2022 to $7.4 million last year as a result.
