The craft beer downturn over the last three years has forced dozens of breweries out of business.
The downturn started in 2023, with 385 brewery closures for the year, the Brewers Association reported.
The slump continued with more brewery closures than openings last year, with 434 shutting down and 268 opening by mid-December 2025, Brewbound reported. Breweries have blamed a decline in consumption and higher operating costs for the downturn.
The timing of the craft beer downturn was unfortunate for new brewery 3rd Level Brewing LLC, which opened its business as the downturn was beginning.
Shutterstock
3rd Level Brewing files Chapter 7
Fledgling Texas craft brewery 3rd Level Brewing LLC filed for Chapter 7 bankruptcy, facing financial distress and industry headwinds.
But the brewery plans to keep operating until it is no longer allowed to, owner Clint Bradley told The Street’s Kirk O’Neil.
“We’ll see how this plays out,” Bradley said. “We’re going to operate as normal until someone tells me I have to stop operating.”
The Round Rock, Texas-based brewery, which is proud of its nerd culture, filed its petition, Case No. 26-10574, on April 1 in the U.S. Bankruptcy Court for the Western District of Texas in Austin seeking to liquidate its assets, according to BK Alerts.
The brewery had been facing financial difficulties, and Bradley concluded in October 2025 that the business would need to file for bankruptcy.
“I thought for sure we would not be open in December,” Bradley said.
The brewery’s bank had sought to foreclose on the brewery, but the bankruptcy filing imposes an automatic stay on all legal actions during the bankruptcy case.
3rd Level Brewing turned to GoFundMe last year, seeking to raise $3,500 to save its business, but instead raised over $13,000 as a lifeline to keep operating.
Bradley, however, refunded the $13,000 to the donors when he realized the business would need to file for bankruptcy and possibly close.
Brewery has not set a final date
3rd Level Brewing, however, does not have a set final date for operating.
Bradley said that there are some possible investors who would like to see the brewery continue operating, but nothing will happen until after the bankruptcy has been discharged.
“After we get through this bankruptcy, we’ll see what comes next,” Bradley said.
Proud of its nerd-themed brewery
3rd Level Brewing, which opened for business in June 2023, is a nerd-themed craft brewery that was founded by comic and video game enthusiasts Bradley and Ross Winner.
“We aim to be a vibrant hub where beer meets nerd culture, offering a relaxed and inviting atmosphere for fans of comics, video games, anime, movies, and television,” the website proclaims.
Taproom pours 12 of its own beers
The brewery brews 12 different beers, ranging from its Carrot Cake Gangster – Project X stout at 10% ABV, to its Fossilized Amber red ale at 4.9% ABV.
The craft beer downturn has taken down other breweries, including Olfactory Brewing, which filed for Chapter 7 bankruptcy liquidation on March 4 after closing its San Francisco brewery in December and Berkeley, Calif., taproom in February.
The owner of longtime Baltimore craft brewery, The Brewer’s Art, filed for Chapter 7 bankruptcy on Feb. 13 to liquidate its assets after suddenly shutting down its business, according to Public Access to Court Electronic Records as reported by Bankruptcy Observer.
Related: Another award-winning brewery files for Chapter 11 bankruptcy