The Raleigh-based brewery Gizmo Brew Works, which has a location on East Franklin Street in Chapel Hill, filed for Chapter 11 bankruptcy protection on Friday.
In a press release provided to Chapelboro, the brewery said its three locations in Raleigh, Durham and Chapel Hill will all remain open as the re-organization takes place.
An earlier report from the Triangle Business Journal cited Gizmo’s debts as more than $1.6 million, according to its bankruptcy petition. Gizmo cited financial difficulties stemming from the pandemic, which came shortly after a production facility expansion in 2018-19, and the grand opening of the Franklin Street location in early 2020.
“The difficult but necessary decision has been coming for some time,” the brewery said in its statement. “While fortunate to survive the pandemic as a company, recovery post-COVID has not been sufficient to balance the debt that was taken on during the prior build-out.
The Gizmo Brew Works Taproom sign on Franklin Street, encouraged people to walk down to its entrance at Amber Alley.
“The craft beer industry is also experiencing challenges at this time,” the statement continues, “as inflation has initiated a market shift that impacts how people spend their disposable income, the cost of brewing ingredients, property leases, and other inputs required to run the company and distribute products.”
According to Gizmo, the bankruptcy protection will allow the brewery to both reorganize the company and retain all current staff.
“Our faith in the Gizmo brand, product and team remains high,” the statement read. “We will emerge as a stronger company ready to be successful for years to come.”
Featured image via Gizmo Brew Works
Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.
Related Stories
‹
Chapel Hill Downtown Partnership Runs Survey on Local Pride FlagsAhead of Pride Month in June, the Chapel Hill Downtown Partnership is taking feedback from community members about which LGBTQIA+ flags they wish to see. The nonprofit, which partners with the local government, has installed and displayed the flags for the past several years. In 2022, however, some community members shared concerns of certain LGBTQIA+ […]
'Uplifting' Pride Promenade Marches Through Chapel HillWith Carolina blue sky above, downtown Chapel Hill was filled with many colors on Saturday afternoon for the local Pride Promenade. With hundreds of people wearing and waving various combinations of colors to represent factions of the LGBTQ+ community, participants gathered in the Peace and Justice Plaza before marching down Franklin Street. Organizers […]
News Around Town: Halloween on Franklin Street in 2025Read a conversation between Chapel Hill mayor Jess Anderson and 97.9 The Hill's Andrew Stuckey about Halloween on Franklin Street.
Tech Company Announces New Corporate Headquarters on West Franklin StreetIotaComm, Inc., a wireless communications and data services company, will be relocating its corporate headquarters to the top floor of the office space at 200 West Franklin Street in downtown Chapel Hill. “We’re thrilled IotaComm is calling Chapel Hill home,” said David Putnam, the town’s economic development director. “Once again, Chapel Hill stands out among […]
Zaxbys Sets Opening Date for New East Franklin Street LocationThe fast-food restaurant Zaxbys will hold a grand opening for its new location in Chapel Hill the morning of Wednesday, April 2, according a release from the business. Zaxbys vice president of operations Horace Williams will join local leaders for a ribbon-cutting ceremony at 10 a.m. in front of the restaurant, which is located at […]
Chapel Hill Restores LGBTQ History, Diversity Pages After Brief Removal During Website AuditAfter a brief — but fervent — controversy on social media Wednesday, the Town of Chapel Hill restored website's pages that were removed.
Chapel Hill Removes New Artwork at Peace & Justice Plaza, Citing 'Deep Division' Over One DetailChapel Hill staff removed the latest art display at the Peace & Justice Plaza on Wednesday, citing division caused by a pro-Palestine symbol.
New UNC Team Store Moving In to Former 'Library' Space on Franklin StreetA new UNC team store is now open at the storefront on 120 East Franklin Street in downtown Chapel Hill with Dyehard by Follett, which is described as “the preeminent fan retail experience in collegiate athletics” in a release by the university. Dyehard will offer “an enhanced in-person shopping experience,” including several pieces of merchandise […]
FC Series Brings July Jolt to Local Businesses; Owners See Potential For MoreThe biggest brands in international soccer popping in for an exhibition at Kenan Stadium is an invaluable boon to downtown businesses.
Gizmo Brew Works Files for Chapter 11 Bankruptcy Protection; Locations Remain OpenThe Raleigh-based brewery Gizmo Brew Works, which has a location on East Franklin Street in Chapel Hill, filed for Chapter 11 bankruptcy protection on Friday. In a press release provided to Chapelboro, the brewery said its three locations in Raleigh, Durham and Chapel Hill will all remain open as the re-organization takes place. An earlier […]
›
