World of Beer, the Tampa-based craft beer chain once hailed for its expansive tap lists and rapid growth, has filed for Chapter 11 bankruptcy, citing a cocktail of financial pressures and internal strife that proved too much to swallow.
At a Glance
- World of Beer filed for Chapter 11 bankruptcy in August 2024.
- The company reported assets and liabilities each between $10 million and $50 million.
- Cited reasons include rising costs, legal disputes, and declining sales.
- Fourteen locations were closed in the year leading up to the filing.
- The company emerged from bankruptcy in December 2024 with plans for expansion.
Brewing Trouble
Founded in 2007, World of Beer (WOB) once stood at the forefront of the U.S. craft beer boom, rapidly scaling its footprint with dozens of tavern-style locations. But by August 2024, the brand found itself drowning in debt and declining consumer interest. Financial disclosures revealed the company had both assets and liabilities between $10 million and $50 million, with a staggering $25.6 million owed to Synovus Bank.
The causes of its collapse were multifaceted. A sluggish post-pandemic recovery, soaring lease rates, and inflationary pressures weighed heavily on margins. Rising interest rates further complicated debt servicing, according to a report from Nation’s Restaurant News. In the year prior to the filing, WOB shuttered 14 underperforming locations.
Watch a report: Tampa-based World of Beer files for bankruptcy.
Bitter Aftertaste, Hoppy Rebound
A major contributor to WOB’s instability was an internal revolt. In 2013, the company attempted to broaden its appeal by rolling out food and spirits at all locations, but the move sparked resistance from franchisees. The resulting legal disputes drained financial resources and fractured leadership unity, as detailed in Restaurant Dive’s bankruptcy analysis.
Meanwhile, the craft beer market itself has cooled. Once seen as the darling of millennial consumers, craft beer consumption in the U.S. declined notably in 2023. According to Nation’s Restaurant News, WOB’s systemwide sales dropped by 13% year-over-year—a death knell for a business built on volume.
Despite the bleak backdrop, the brand isn’t throwing in the towel. In December 2024, World of Beer announced it had exited bankruptcy with restructured debt and ambitious plans to open 20 new locations over the next five years. CEO Paul Avery signaled a fresh strategy centered around operational discipline and market adaptation.
Still, WOB is not alone in its struggles. The bankruptcy of Nebraska Brewing Company and Alamo Beer Company underscores a brewing industry reckoning. Whether World of Beer’s reinvention proves sustainable—or just another round in a spiraling downturn—remains to be seen.
