When a company files for bankruptcy, it gets a chance to reorganize its finances and work with creditors, vendors, and landlords to find a path forward.

A court supervises the process, and the presiding judge could reject a plan presented by the company, even if most of its stakeholders agree with it. The judge has to make a decision in the best interest of the most people.

Usually, that means keeping the business open, because it keeps people working and gives debtors a chance to recoup some of their money. Sometimes, however, the court may decide that a liquidation is more appropriate.

“A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a ‘reorganization’ bankruptcy. Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements,” according USCourts.gov.

The situation becomes more complicated when one or more people who own a stake in a business file for Chapter 7 bankruptcy. That puts those assets, which impact the business as a whole, in peril.

That’s what’s happening with the part-owners of Bosque Brewing Company and Smothered, a small brunch chain.

Bosque’s bankruptcy picture gets more complicated

TheStreet’s Kirk O’Neil first reported on Bosque’s Chapter 11 filing back on October 12.

“Popular pizza and craft brewery chain Bosque Brewing Company LLC filed for Chapter 11 bankruptcy protection to reorganize its business after adding locations in 2024 and bringing brewing operations back to its New Mexico home in September 2025,” he wrote.

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Albuquerque-based Bosque Brewing filed its petition in the U.S. Bankruptcy Court for the District of New Mexico on Oct. 6, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities.

Bosque, and its sister company Smothered, which was not part of the Chapter 11 filing, have continued to operate normally.

Bosque has contracted out its beer brewing.

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Bosque and Smothered co-owners file for Chapter 11 bankruptcy

The Bosque and Smothered situation has recently become more complicated.

“Gabriel Jensen and his spouse filed for Chapter 7 bankruptcy on Nov. 12, according to court records review by Albuquerque Business First. In the filing, Jensen and his spouse were listed as co-owners with a combined 22.23% stake in Bosque Brewing Co. LLC and 22.25% stake in Smothered,” the business publication reported.

Their filing showed deep personal financial problems and that both Bosque and Smothered face significant hurdles to continuing operations:

  • The Jensen filing showed the couple had $1 million to $10 million in assets and $10 million to $50 million in debt.
  • Jensen reported in the filing that Bosque Brewing was “in active Chapter 11 bankruptcy” and that its “debts exceed present value of business.”
  • For Smothered his Chapter 11 bankruptcy filing listed the business as “insolvent,” also stating that “debts exceed value of assets.”
  • The Jensen filing included nearly $2 million in business debt with a personal guarantee to Live Oak Bank, marked as community debt, with over $172,000 to On Deck Capital, nearly $227,000 to PAC Western Financial and other smaller or unknown amounts.

In addition to the Jensen filing, another part-owner of Bosque and Smothered has filed for bankruptcy protection.

“On Nov. 18, Jotham Michnovicz filed for Chapter 7 bankruptcy, according to court records. The records show that Michnovicz was a 22.35% stakeholder in Bosque Brewing LLC, as well as owner of Smothered LLC,” BizJournals reported.

Michnovicz’s filing stated he estimated they had $500,000 to $1 million in assets and $10 million to $40 million in debt. He listed Bosque Brewing as having $2.64 million in assets with $17.1 million in liabilities.

Bosque Brewing Co.’s Chapter 11 bankruptcy

  • Bosque Brewing Co., LLC filed for Chapter 11 bankruptcy on October 6, 2025 in the U.S. Bankruptcy Court for the District of New Mexico.
    Source: Inforuptcy
  • According to court filings, Bosque listed assets between $1 million and $10 million and liabilities between $10 million and $50 million.
  • Despite the bankruptcy, Bosque says it will continue operating its taprooms and restaurants during the restructuring.
    Source: KOB.com
  • Bosque has a production and distribution deal with Marble Brewery, which will brew their flagship beers while Bosque handles taproom operations.
    Source: The Paper
  • Two co‑owners of Bosque Brewing filed for personal bankruptcy in November 2025, shortly after the company’s Chapter 11 filing.
  • Those co-owners are also linked to Smothered, the brunch concept launched by Bosque Brewing.
    Source: BizJournals
  • Smothered and Restoration Pizza are under separate LLCs and were not named as debtors in Bosque’s Chapter 11 filing.
    Source: Dark Side Brew Crew

    Additional data from: PacerMonitor

As of now, Bosque, Smothered, and Restoration Pizza, the pizza concept that operates inside Bosque’s locations, remain open.

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