Iron Hill Brewery files for bankruptcy after sudden store closures

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The Iron Hill Brewery and Restaurant chain, which closed 16 stores in recent weeks, has filed for bankruptcy.

The Newark, Del., brewery, founded in November 1996, has filed for Chapter 7 in U.S. Bankruptcy Court in New Jersey to begin liquidating the nearly 30-year-old East Coast chain, which until recently had 10 locations in Pennsylvania, two locations each in Delaware and South Carolina, and separate locations in Georgia and New Jersey.

A month ago, Iron Hill closed its flagship store in Newark, Delaware, and two restaurants in New Jersey and Pennsylvania. Two weeks later, on September 25, the remaining employees at Iron Hill Restaurant learned they had lost their jobs.

Iron Hill Brewery announced its intention to file for bankruptcy in an email to employees, the Delaware News Journal, part of the USA TODAY Network, reported.

According to the bankruptcy filing, Iron Hill Brewery’s assets are estimated at $164,581 and its total debt is $20 million, most of which is a $17.3 million lien on real estate held by BankUnited in Miami Lakes, Florida.

Possibility of class action lawsuit over Iron Hill Brewery bankruptcy

The Delaware News Journal reports that at least one law firm is considering a possible class action lawsuit over Iron Hill’s bankruptcy, citing potential violations of the Worker Adjustment and Retraining Notification Act of 1988. The WARN Act requires most employers with 100 or more employees to notify employees at least 60 calendar days in advance of any planned closure or mass layoff.

The Berwyn, Pennsylvania-based law firm Sauder Scherkopf has launched a website soliciting comments from former Iron Hill employees who believe their rights under the WARN Act have been violated.

Contributors: Natalie Neysa Alland, Ryan Cormier, Patricia Talorico, and Xerxes Wilson. USA TODAY Network

Mike Snyder is a national trends news reporter for USA TODAY. You can follow him on Threads, Bluesky, and X, and email him at: blythe & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com

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