A nearly 10-year-old independent craft brewery and taproom based in Austin, Texas, has filed for bankruptcy protection. Hi Sign Brewing, LLC offers a range of handcrafted beer brewed on-site. The taproom also serves specialty coffee.
Case filings show a notable gap between its estimated assets and liabilities, which may have resulted in the latest filing.
Hi Sign Brewing, LLC Enters Bankruptcy
The veteran-owned brewing company moved to bankruptcy court on May 31, 2026. As per the case filings available on PACER, it has qualified as a small business debtor and has elected to proceed under Subchapter V of Chapter 11.
These filings are typically designed to help businesses complete bankruptcy proceedings more quickly and cost-effectively.
While proceedings have commenced in the U.S. Bankruptcy Court for the Western District of Texas, regular operations at the brewery and taproom will continue as usual.
Case Related Details
Court filings state that attorney Stephen W Sather of Barron & Newburger, P.C. is offering legal representation to Hi Sign Brewing, LLC. In addition, Mark Phillippe is the authorized representative who signed the petition prior to filing.
Court records suggest that the company owes more than what it owns. While its estimated liabilities are between $500,001 and $1 million, its assets are just up to $50,000.
The company also added a list of creditors who have the largest unsecured claims in its petition. These include Small Business Administration, First Citizens Bank, JP Morgan Chase Bank, Navitas Credit Corp., and more.
Court filings indicate that after administrative expenses are paid, no funds will be available for distribution to the unsecured creditors.
Other details of the case, as given in the Chapter 11 petition, are shared here:
- Filing Date: May 31, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Western District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-11027-cgb
- Estimated Assets: Between $0 and $50,000
- Estimated Liabilities: Between $500,001 and $1 million
- Estimated Creditors: Between 1 and 49
- Reason for Filing: Restructure business under court supervision
Court records add that Escondido HSB, LLC, one of the subsidiaries of the brewing company, submitted a bankruptcy petition to the court on the same day as the debtor.
About the Company
Hi Sign Brewing, LLC serves as a veteran-owned craft brewery and taproom in Austin, Texas. According to its LinkedIn page, the company was founded in 2016.
Founded by Mark Phillippe, a Marine Corps veteran, the company’s on-site brews at its Shady Lane facility include Eastside Pilsner, El Berto Mexican Lager, Holly St. Haze IPA, and Violet Blueberry Blonde.
Besides being a production facility, the company operates as a consumer-facing taproom, serving specialty coffee. The location includes a covered patio and beer garden and hosts on-site food vendors.
Recent Filings by Other Breweries
Bankruptcy filings in the brewery industry have increased in recent months.
Lock 27 Brewing, LLC, which has been serving since 2012, is the latest name against this backdrop. The craft brewery and brewpub business from Ohio submitted a Chapter 11 petition this April amid a financial imbalance and over $2 million in unsecured claims. The business also runs a taproom and restaurant.
A Little Ferry, New Jersey-based brewery, Brix City Brewing, LLC, entered Chapter 11 proceedings on February 5, 2026. Case filings showed a wide gap between its total assets and liabilities. Prior to this, the decade-old business had ceased operations at its taproom in the same flagship location due to rising rent. This indicates consistent operational troubles facing the brewery.
Hi Sign Brewing LLC’s filing comes amid broader financial pressures affecting regional and independent breweries, including debt obligations, rising operating costs, and shifting consumer demand.
