E-Malt.com News article: USA, CA: Temescal Brewing files for bankruptcy

A popular Oakland craft brewery has filed for bankruptcy, the San Francisco Chronicle reported on October 10.

Temescal Brewing, with its colorful taproom known for balanced lagers and hazy IPAs, initiated the Chapter 11 bankruptcy process on October 10. But CEO and owner Brandon Börgel emphasized that the brewery is not closing.

“I genuinely believe that it’s going to hopefully give us a fresh start and an opportunity to stick around for the long term,” Börgel said.

It’s the latest in a string of major changes for Bay Area breweries amid a national decline in alcohol consumption. In September, San Francisco’s 21st Amendment Brewery shut down, citing declining sales and a “cash bleed.” In April, HenHouse and Fort Point breweries merged, framing the move as a way to avoid being “one of the many breweries that’s gone out of business in the last few years.”

Debt had been mounting for Temescal. In 2019, three years after opening its original taproom and beer garden, the brewery opened a large facility in Jack London Square, with the goal of increasing production significantly. “Unfortunately the pandemic just made that not a reality,” Börgel said. “So we had doubled our overhead just as business took a downturn. That was a few really hard years.”

In response to a contracting beer market, founder Sam Gilbert downsized production, which didn’t help with debt repayments. Last summer, Börgel and other investors took over the business from Gilbert, who remains a shareholder and board member but is no longer involved in day-to-day operations.

Börgel spent the better part of the year “negotiating diligently with our lender,” he said. “And then at a certain point we weren’t negotiating anymore.” Failing the possibility of negotiating its debt, Temescal was left with two options: “Either wind down the business or fight on through bankruptcy.”

As the case makes its way through the court, Temescal will remain open. A similar situation unfolded 10 years ago with San Francisco’s Magnolia Brewing Co., which continued to operate after filing for Chapter 11 bankruptcy. (Magnolia subsequently sold to Colorado’s New Belgium Brewing Co. in 2017, and again last year to a local bar owner.)

Temescal quickly rose to prominence in the Bay Area craft beer scene after opening in 2016 in the North Oakland neighborhood it’s named for. Gilbert had previously run a San Francisco homebrewing collective, Brewlab, and raised more than $50,000 in a Kickstarter campaign to open the taproom. He commissioned murals from local artists for the open-air beer garden on Telegraph Avenue.

The brewery’s playful design — which its creative director at the time described as “Memphis Contemporary” — set it apart from the dark, industrial warehouses of its peers. Temescal has made an effort to establish itself as a community hub, hosting queer nights and family movie screenings, and continuing to showcase work from local artists.

It became known primarily for two styles of beers: lagers, particularly its Temescal Pils, and hazy IPAs, especially its Temescal Hazy. Temescal’s tall cans are a frequent sight at Bay Area restaurants and bottle shops. Head brewer Lukas Medina came on board in February and has been introducing more West Coast-style IPAs, Börgel said.

In response to increased demand for nonalcoholic options — which went from 2% to 10% of sales in the last six months — Börgel said the team is considering brewing its own nonalcoholic beer. (The current offerings include other breweries’ nonalcoholic beers, plus kombucha and soda.) He’s also lowered the price on Temescal Pils and is throwing events like Taco Tuesday and Throwback Thursday featuring $5 pints. “When people’s perception of craft beer is it’s too expensive, is there a way for us to offer some products that aren’t?” he said.

The “bittersweet thing” about the bankruptcy filing, Börgel continued, is that sales are up. “We’re having a phenomenal year this year,” he said. “There does seem to be more interest and more demand for Temescal beer.”

The trend wasn’t enough to get them out of debt, but he’s hopeful that it indicates a promising future.


11 October, 2025