Summit Brewing Company’s lender has begun foreclosure action against the brewery.

BMO Bank has requested the appointment of a general receiver over the St. Paul, Minnesota, business and its assets.

According to Ramsey County Court documents, Summit took out loans that totaled more than $8 million in 2024 as the craft brewing bubble began to burst. To secure those loans, Summit put its property at 901 Montreal Circle in St. Paul up for collateral, along with its brewing equipment and other property.

Summit missed a payment at the end of 2025, placing it in default. The brewery and the bank agreed upon a forbearance, which gave the brewery until July 31 to comply with the terms of the loan.

When the brewery reported that its business conditions continued to deteriorate, BMO declared that Summit was in default and demanded immediate payment of the loans.

The foreclosure action was filed on Thursday and a hearing on the matter has not yet been scheduled.

In a news release, Summit said “the company’s board of directors and management team have worked diligently with outside advisors to identify and pursue viable alternative paths forward, including refinancing arrangements, strategic transactions, and operational restructuring initiatives.”

Despite all efforts, the bank and the brewery were not able to reach a resolution and the foreclosure action was taken, the statement said.

“Our board and management team have made substantial efforts over many months to chart a different course for this company,” said Brandon Bland, Summit Brewing president and CEO. “This reflects the difficult capital environment the entire craft brewing industry is navigating, not a reflection of the strength of our brand, our people, or our operating model. We’re incredibly proud of this team and everything they’ve put into this business, and we intend to continue evaluating every option available to us as this process moves forward.”

The company intends to continue operating during the receivership proceedings.

Summit, one of the first craft breweries in Minnesota, was founded in 1986 by Mark Stutrud. Today’s craft brewing industry faces many challenges, including younger generations drinking less, increased ingredient costs and an oversaturated market. More than a dozen Minnesota breweries have closed in the past few years.

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