Summit Brewing faces foreclosure over $8.2 million debt

Summit Brewing Co., a long-standing craft beer pioneer in Minnesota, is facing foreclosure after defaulting on more than $8.2 million in debt. Chicago-based BMO Bank has filed a lawsuit in Ramsey County District Court requesting that a judge order the foreclosure of the brewery’s property and place its assets into receivership.

The debt consists of a $1.25 million revolving line of credit and a $6.875 million term loan issued in December 2024. The loans were secured by the company’s property in St. Paul and its various assets, including machinery, vehicles, patents, and trademarks. Although the company entered into a forbearance agreement in January to meet profitability benchmarks, it notified the bank in June that it lacked sufficient cash to fulfill its obligations.

Summit’s president and CEO, Brandon Bland, stated that leadership attempted to find alternative solutions but could not reach a resolution with the lender. While the company awaits a formal application for a receiver, it continues to operate as usual. The situation reflects broader challenges in the brewery industry, including rising costs and shifting consumer preferences.