The first was Round Rock’s 3rd Level Brewing, which filed for Chapter 7 bankruptcy on April 1. Clint Bradley and Ross Winner founded the comic book-meets-gamer-themed beer- making business in 2023. Their beverage lineup wasn’t anything out of the ordinary: a mix of lagers, IPAs, wheat beers and sours. Unfortunately, their opening happened to coincide with the national downturn of the craft brewing industry.
When they filed for Chapter 7, 3rd Level owed just over $1 million to Dogwood State Bank. Court documents showed the brewery had around $142,000 in assets. On April 17, Bradley posted an Instagram video announcing the business had officially closed.
The second was Texas Wine Company Inc., which filed for Chapter 11 bankruptcy on April 6. The winery does business under the names Dixon Creek and Triple D Winery (not related to the one in Brownsville) and operates in Meadow, southeast of Lubbock.
According to court documents, Texas Wine Company had liabilities at around $1.02 million. A chunk of that, at least $210K, was the result of a judgement against them in a legal case. They held roughly $3 million in real estate and $950,000 in inventory, but the problem was they had little in cash—just $5,486, according to the declaration. Curiously, one note in the document listed “Misappropriation of funds by office manager and staff.” Because it’s chapter 11, the company aims to preserve their business by restructuring.
Lastly, Hilltop Winery at Paka Vineyards LLC filed for Chapter 12 bankruptcy on April 6. According to court documents, Hilltop is both a farm and winery with hundreds of acres of land in both West and North Texas. They currently owe over $3.1 million, most of that on a 320-acre property in Terry County (the same region as Texas Wine Company). The declaration shows Hilltop has over $19 million in assets, but only $6,426 in cash on hand. What’s hopefully next is that all parties agree to a modified debt repayment plan and that Hilltop keeps its property. If not, Hilltop could have to give it up to settle the debt.
The cases happen to coincide with the changing climate of alcohol consumption in Texas and beyond. In 3rd Level’s case, it ran headlong into the craft beer downturn that started in 2023. Since then, many small breweries have closed up shop in the face of rising costs and shrinking foot traffic.
Wine is a little more complicated. The industry as a whole rose sharply during the COVID-19 pandemic but then started shrinking in 2022. Declining consumption of wine, whether it be because of alternatives or health reasons, has been the main culprit. However, Texas appears to be doing fine? According to a 2025 WineAmerica report, the state industry generated more than $24 billion in “total economic impact” and the tourist appeal of Texas Hill Country wineries has only grown.