The Drink Company Based In Washington State That Filed For Bankruptcy After 14 Years In Business

Bankruptcy appears to be a big theme this year, as at least nine restaurant chains went bankrupt in 2025. Now, a soft drink company has joined those ranks, too. Kombucha Town filed for Chapter 11 bankruptcy on July 30, 2025, according to records published on Inforuptcy — but the news of this development has gone under the radar until early October.

Kombucha Town has been around for 14 years. Cascadia Daily reports that the decision to file for bankruptcy was incredibly difficult for the company's owner, Chris McCoy, who has been trying to keep the company afloat since the COVID-19 pandemic thwarted its expansion plans. Ultimately, the filing was inevitable due to the mounting debt that's estimated to be around $2.6 million.

Finances have been a struggle for Kombucha Town since 2020, a common theme with businesses that are going bankrupt. McCoy even applied for an Economic Injury Disaster Loan and later crowdfunded the business in 2022 just to keep it running. Despite the efforts, though, the problems continued. Vendors allegedly struggled to get paid by the company, according to a Redditor who claimed that "it took 3 years to collect $500 from" Kombucha Town.

Most of us associate the word "bankruptcy" with an immediate closure of a business, but there are actually several types of bankruptcies. Chapter 11 is one that allows the company to continue operating, which is why you can still dine at a restaurant after it files for this type of bankruptcy. Per the United States Courts, "a Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time," which is exactly the path Kombucha Town is now embarking on.

The company is planning to reassess its finances and reorganize how it's going to pay off the debt. McCoy is not looking to shut the business down; he's looking to catch a break from the pressure of the debt and ultimately make a comeback. In Chapter 11 bankruptcy, this is usually done through a creditor-approved plan, which buys the company some necessary time to reassess where things have previously gone wrong. 

As mentioned, during this process, the business is allowed to operate, something Kombucha Town is very much still doing. On the very same day that the news of the bankruptcy broke nationwide, the brand introduced three new fall-inspired flavors: Apple, Pear, and Pumpkin Spice Kombucha. So clearly, the company is not going anywhere just yet.