Cary’s beloved Cotton House Craft Brewers is hitting a rough patch—financially, that is. The six-year-old brewery, nestled right next to Downtown Cary Park, has filed for Chapter 11 bankruptcy after ambitious expansion plans led to mounting debt. But before you start pouring one out, know this: they’re not closing. Founder Brent Webb says the taps will keep flowing. What tipped the scales? A failed restaurant venture and shuttered second location left the business with just one revenue stream and a stack of IOUs. Still, Webb remains optimistic, stating, “We’re going to go through this and come out through the other side.” With $1 to $10 million in liabilities and creditors like the Small Business Administration and First Bank knocking, Cotton House is betting on community support and a comeback—cheers to that.

Key Points:

• Cotton House Craft Brewers in Cary filed for Chapter 11 bankruptcy but plans to remain open.
• The brewery lists $100K–$500K in assets and $1M–$10M in liabilities.
• Failed expansions, including the closure of Salt restaurant and a second taproom (Triangle Beer Co.), led to financial trouble.
• Founder Brent Webb said, “We had to walk away from it, which left us with a pretty big deficit.”
• Major creditors include the U.S. Small Business Administration ($400K), First Bank ($133K), and the NC Department of Revenue ($179K).
• The failure of Salt also ended their catering business, one of four original revenue streams.
• Only one taproom remains open; Webb says revenue continues to grow year over year despite setbacks.
• The bankruptcy was filed with the help of law firm Buckmiller & Frost.
• Cotton House is one of many breweries in North Carolina struggling due to inflation, rising aluminum tariffs, and profit margin pressure.
• In a public statement, the brewery shared: “Our commitment to our loyal patrons and the community… is strong… We are excited for what the future holds.”

Fun Fact:

• Cotton House isn’t alone—Raleigh’s Gizmo Brew Works also filed for Chapter 11 and successfully emerged from bankruptcy, setting a hopeful precedent.

Additional Context:

• The brewery industry nationally is facing headwinds from inflation and operational costs, especially for small operations stretched thin by loans and expanding too quickly.
• SBA loans, which were a lifeline during COVID-19, are now becoming a burden as payments ramp up post-deferment.

So if you're in the Cary area, consider stopping by Cotton House. Supporting local businesses might just help them tan the foam off this heady financial pint.
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