Summit Brewing foreclosure fight highlights broader craft-beer shakeout
BMO Bank sued to appoint a court receiver to seize control of Summit Brewing's St. Paul brewery and assets, saying the brewer is insolvent or imminently at risk of insolvency.[1]
The loan package at the center of the suit included a $1.25 million revolving line and a $6.875 million term loan issued Dec. 31, 2024, both secured by a mortgage and substantially all personal property.[1] Summit missed the Dec. 31, 2025 payoff on the revolving line and entered a Jan. 1-July 31, 2026 forbearance agreement.[1] Summit sent a June 15, 2026 written notice admitting it would miss minimum earnings, and BMO sent an Aug. 13, 2026 default notice terminating forbearance and demanding immediate repayment.[1] BMO is asking a court to appoint a receiver to take control of the property and broad categories of personal property, including equipment, inventory, trademarks and goodwill.[1]
Summit produced 55,338 barrels in 2025, down from about 76,000 in 2024, and remained Minnesota's third-largest brewery with 45 full-time and nine part-time employees.[2] The brewer expanded into contract production, including THC-related beverages, but looming federal hemp restrictions and missed demand cut revenues; Summit refinanced with BMO in 2024, and the local beverage-banking team later left.[2]
Nationally, craft beer production fell 4% in 2025, with 481 brewery closures, 300 openings and 60% of breweries reporting lower output, and Indeed Brewing's Ryan Bandy warned nearly every brewery is closer to foreclosure than customers realize, underscoring a wider shakeout the industry is facing.[2]
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📌 Key Facts
- BMO Bank (Chicago‑based) is the suing lender and is asking the court to appoint a receiver to take control of Summit’s assets, including the brewery property and broad categories of personal property (BMO Bank).
- The loan to Summit consists of a $1.25 million revolving line of credit and a $6.875 million term loan issued Dec. 31, 2024, secured by a mortgage and substantially all of Summit’s personal property (a $1.25 million revolving line of credit and a $6.875 million term loan).
- Summit missed the Dec. 31, 2025 payoff on the revolving line—triggering default on the term loan—entered a Jan. 1–July 31, 2026 forbearance agreement, sent a June 15, 2026 written notice admitting it would miss minimum earnings and could not repay the revolving loan, and then received an Aug. 13, 2026 default notice terminating forbearance and demanding immediate repayment (Aug. 13, 2026 default notice).
- Summit CEO Brandon Bland said day‑to‑day operations are expected to continue and framed the situation as a reflection of a “difficult capital environment” for craft beer rather than a failure of the brand (Summit CEO Brandon Bland).
- Nationally, craft beer production fell 4% in 2025, with 481 brewery closures and 300 openings and 60% of breweries reporting lower output, placing Summit’s foreclosure risk in the context of a broader industry shakeout (craft beer production fell 4% in 2025).
- Summit’s volume declined to 55,338 barrels in 2025 from 76,000 in 2024 while remaining Minnesota’s third‑largest brewery, and the company reported 45 full‑time and nine part‑time employees (55,338 barrels).
- Summit expanded into contract production—especially THC‑related beverages—and looming federal hemp restrictions undercut those plans, contributing to the revenue shortfall (THC-related beverages).
- Summit refinanced with BMO in 2024, but the relationship deteriorated after the original local beverage‑banking team left and the loan shifted to a Milwaukee‑based group that was less receptive to Summit’s turnaround plan (refinanced with BMO in 2024).
- Indeed Brewing’s chief business officer Ryan Bandy warned that nearly every brewery is closer to foreclosure than customers realize, underscoring systemic financial stress across the sector (Indeed Brewing’s chief business officer Ryan Bandy).
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Places Summit’s foreclosure risk in national context: craft beer production fell 4% nationwide in 2025, with 481 brewery closures and 300 openings; 60% of breweries reported lower output.
- Details Summit’s volume decline more precisely: 55,338 barrels produced in 2025, down from 76,000 in 2024, while remaining the state’s third-largest brewery.
- Reports staffing levels at Summit: 45 full-time and nine part-time employees.
- Reveals that Summit expanded into contract production, especially THC-related beverages, and that looming federal hemp restrictions undercut those plans and contributed to the shortfall.
- Describes how Summit refinanced with BMO in 2024, then saw its relationship deteriorate after the original local beverage-banking team left and the loan shifted to a Milwaukee-based group less receptive to Summit’s turnaround plan.
- Quotes Indeed Brewing’s chief business officer Ryan Bandy saying nearly every brewery is closer to foreclosure than customers realize, underscoring systemic financial stress across the sector.
- Identifies BMO Bank (Chicago‑based) as the suing lender, whereas earlier coverage only referenced a generic lender.
- Details the exact loan structure: a $1.25 million revolving line of credit and a $6.875 million term loan issued Dec. 31, 2024, secured by a mortgage and substantially all Summit’s personal property.
- Explains that Summit missed the Dec. 31, 2025 payoff on the revolving line, triggering default on the term loan, and then entered a Jan. 1–July 31, 2026 forbearance agreement.
- Reports Summit’s June 15, 2026 written notice to BMO admitting it would miss minimum earnings, could not repay the revolving loan by the end of the forbearance period, and that its finances were deteriorating.
- Confirms BMO’s Aug. 13, 2026 default notice terminating forbearance, demanding immediate repayment, and asserting Summit is insolvent or in imminent danger of insolvency.
- Provides an on‑record statement from Summit CEO Brandon Bland saying day‑to‑day operations are expected to continue and framing the mess as a reflection of a ‘difficult capital environment’ for craft beer, not of the brand’s underlying strength.
- Clarifies that BMO is asking the court to appoint a receiver to take control of Summit’s assets, including the brewery property and broad categories of personal property (equipment, inventory, IP, goodwill, etc.).