Iron Hill Brewery & Restaurant officially filed for Chapter 7 bankruptcy on October 3 after abruptly closing all of its stores.
Whereas Chapter 11 bankruptcy allows a company to restructure and continue operations, Chapter 7 involves entities shutting down and liquidating assets to pay creditors. Court documents show Iron Hill has about $20 million in debt and $125,000 in cash.
On September 25, Iron Hill announced on social media that all 16 locations had permanently closed. “It has been our pleasure to serve you, and we are deeply grateful for your support, friendship, and loyalty over the years,” the message said. The chain added that it hopes to return in the future.
A lawsuit could be coming down the pike as well. Law firm Sauder Schelkopf is investigating a potential class action lawsuit and whether the company violated the WARN Act, which requires businesses to provide 60 days’ notice before engaging in mass layoffs. If Iron Hill is found to have violated this rule, eligible workers could receive back pay and benefits for up to 60 days.
CEO Mark Kirke, who joined the brand in January after serving in the same position at TooJay’s Deli, told FSR magazine in June about revitalization strategies around menu, alcohol, and loyalty. Iron Hill leaned into the brunch daypart and opened an hour earlier. Additionally, about a month and a half before the closure announcement, the chain unveiled a new LunchBox promotion providing guests with a cup of soup or side salad, handheld or entrée, and soft drink for $17. The chain also added a new, free loyalty program in which customers could rack up points to earn rewards. In terms of alcohol, the brand grew its wine list by 50 percent and elevated the choices.
At the time of his hire, Kirke described Iron Hill—which had won 88 total awards at the World Beer Cup—as an “iconic brand with a rich legacy.”
“We can do the food extremely well and make hospitality present, and it is just a place that you love to come and have a great time,” Kirke said at the time. “You know you’re going to get great scratch food, and then we’re going to import the beers for you from across the room. That’s a huge win.”
Pennsylvania Attorney General Dave Sunday said customers who bought unused gift cards to Iron Hill should dispute their purchases with their credit card company and consider filing a complaint with the Bureau of Consumer Protection.
Iron Hill’s bankruptcy joins several others, including Pinstripes, Abuelo’s, Bravo! Italian Kitchen and Brio Italian Grille, Red Lobster, TGI Fridays, Hooters, Planta, On The Border, Bar Louie, Sticky Fingers Rib House, Buca di Beppo, and Melt Bar & Grilled.
