December 30, 2023
Tammy Paolino/Courier-Post
Flying Fish is one of the oldest craft breweries in New Jersey, but the company is filing for Chapter 11 bankruptcy protection months after an acquisition deal by Cape May Brewing fell through.
South Jersey staple Flying Fish Brewing Co. filed for Chapter 11 bankruptcy protection this week. The Somerdale-based brewery was in talks with Cape May Brewing Co. for an acquisition deal, which fell through in the summer.
According to the bankruptcy filing, Flying Fish is owned by Scranton-based private equity firm Elk Lake Capital. The bankruptcy filing also revealed that the company has $1.3 million in assets and $9.3 million in liabilities. It is unknown how the filing will immediately affect the brewery's operations.
Founded in 1995 by Gene Muller and operating from facility in Cherry Hill the following year, Flying Fish is one of the original craft breweries in the region, and the brewery touts itself as the first microbrewery in the state. Flying Fish outgrew its original location and moved to a larger, modern facility in Somerdale, Camden County, in 2012 that was powered by an array of 463 solar panels and included a tasting room.
As it grew, Flying Fish's beer became more widely available in South Jersey and the Philadelphia region. The brewery has won multiple national awards in its history, and for time starting in 2009, became known for its series of limited-edition beers named after exits on the New Jersey Turnpike.
But small breweries have been struggling in the past few years. According to the Brewers Association, at least 385 breweries have closed in 2023 alone. In just Pennsylvania, breweries have been closing down at a rate of at least one per month. In New Jersey, state legislation has given breweries some limitations regarding food service and hosting special events, which some breweries have blamed for their financial difficulties.
The bankruptcy filing from Flying Fish briefly paints a picture of the company's health, with a gross revenue of $3.1 million as of the filing. The number is a decline of 23% from its revenue of $4 million in 2022. Cape May Brewing announced plans to acquire Flying Fish back in April as a "strategic investment." The proposed acquisition would have expanded Cape May's distribution while both breweries would continue selling their beers independently.
However, Cape May called off the acquisition deal in June after "after extensive analysis during the diligence phase." Then in September, Cape May announced that it was ceasing its self-distribution operations and that four family-owned distributors in New Jersey would now manage the distribution of Cape May products.
