"Kombucha Town filed for Chapter 11 bankruptcy on July 30, 2025, according to records published on Inforuptcy - but the news of this development has gone under the radar until early October. Kombucha Town has been around for 14 years. Cascadia Daily reports that the decision to file for bankruptcy was incredibly difficult for the company's owner, Chris McCoy, who has been trying to keep the company afloat since the COVID-19 pandemic thwarted its expansion plans."
"Ultimately, the filing was inevitable due to the mounting debt that's estimated to be around $2.6 million. Finances have been a struggle for Kombucha Town since 2020, a common theme with businesses that are going bankrupt. McCoy even applied for an Economic Injury Disaster Loan and later crowdfunded the business in 2022 just to keep it running. Despite the efforts, though, the problems continued."
"Chapter 11 is one that allows the company to continue operating, which is why you can still dine at a restaurant after it files for this type of bankruptcy. Per the United States Courts, "a Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time," which is exactly the path Kombucha Town is now embarking on."
Kombucha Town filed for Chapter 11 bankruptcy on July 30, 2025, with records published on Inforuptcy and wider notice emerging in early October. The company operated for 14 years under owner Chris McCoy, who faced mounting debt estimated at about $2.6 million after COVID-19 derailed expansion plans. Financial struggles began in 2020, prompting an Economic Injury Disaster Loan application and a 2022 crowdfunding effort to stay afloat. Vendors reportedly experienced payment delays, including a Reddit claim about a three-year wait to collect $500. Chapter 11 status allows continued operation while proposing a reorganization plan to repay creditors and reassess finances.
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