3rd Level Brewing files for Chapter 7 bankruptcy

Craft beer downturn forces closure of nerd-themed Texas brewery

Apr. 4, 2026 at 2:04pm

Got story updates? Submit your updates here. ›

3rd Level Brewing LLC, a nerd-themed craft brewery in Round Rock, Texas, has filed for Chapter 7 bankruptcy after facing financial difficulties due to the ongoing craft beer industry downturn. The brewery, which opened in 2023, had sought crowdfunding and investor support but ultimately concluded it needed to liquidate its assets.

Why it matters

The closure of 3rd Level Brewing is the latest example of the challenges facing the craft beer industry, which has seen hundreds of brewery shutdowns in recent years amid declining consumption and rising costs. The fate of 3rd Level highlights the precarious position of newer, niche breweries as they navigate an increasingly competitive and volatile market.

The details

3rd Level Brewing filed for Chapter 7 bankruptcy on April 1, 2026, in the U.S. Bankruptcy Court for the Western District of Texas in Austin. The brewery had been facing foreclosure from its bank, but the bankruptcy filing imposed an automatic stay on legal actions. Owner Clint Bradley said the brewery will continue operating until it is no longer allowed to, and is hoping for potential investors to come forward after the bankruptcy is discharged. 3rd Level Brewing opened in June 2023 as a nerd-themed craft brewery, brewing 12 different beers including a 10% ABV stout and a 4.9% ABV red ale.

  • 3rd Level Brewing opened in June 2023.
  • The craft beer downturn began in 2023, with 385 brewery closures reported that year.
  • In 2025, there were more brewery closures than openings, with 434 shutting down and 268 opening.
  • 3rd Level Brewing filed for Chapter 7 bankruptcy on April 1, 2026.

The players

3rd Level Brewing LLC

A nerd-themed craft brewery that opened in Round Rock, Texas in June 2023.

Clint Bradley

The owner of 3rd Level Brewing who filed for Chapter 7 bankruptcy after concluding the business would need to liquidate its assets.

Got photos? Submit your photos here. ›

What they’re saying

“We'll see how this plays out. We're going to operate as normal until someone tells me I have to stop operating.”

— Clint Bradley, Owner, 3rd Level Brewing

“After we get through this bankruptcy, we'll see what comes next.”

— Clint Bradley, Owner, 3rd Level Brewing

What’s next

The bankruptcy court will oversee the liquidation of 3rd Level Brewing's assets. Clint Bradley said there are some potential investors interested in keeping the brewery operating, but any future plans will depend on the outcome of the bankruptcy proceedings.

The takeaway

The closure of 3rd Level Brewing is a sobering example of the challenges facing the craft beer industry, which has seen hundreds of brewery shutdowns in recent years amid declining consumption and rising costs. Newer, niche breweries like 3rd Level are particularly vulnerable to these market forces, highlighting the precarious position of many small businesses in the current economic climate.