Iron Hill Brewery & Restaurant, which abruptly closed all locations last month after nearly 30 years in business, has officially filed for bankruptcy.
The local chain filed under Chapter 7, which allows for liquidation, as opposed to Chapter 11, which lets a company reorganize and remain open.
Iron Hill owes more than $20 million to creditors and has about $125,000 in the bank, according to documents filed over the weekend in U.S. Bankruptcy Court in New Jersey.
The company, founded in Newark, Del., in 1996, had expanded in recent years, opening restaurants in South Carolina and Georgia, canning its beers for sale, and announcing plans to open a location on Temple University’s campus.
» READ MORE: Iron Hill Brewery has closed all locations
Bankruptcy documents show those moves did not pay off. Since Jan. 1, the company had brought in about $242,000 in gross revenue from business operations. That figure was about $479,000 in 2024, according to the documents, and about $873,000 in 2023.
Company representatives, including an attorney listed in court documents, have not returned The Inquirer’s requests for additional comment.
Iron Hill executives first referenced bankruptcy plans in a message to employees on Sept. 25, writing: “Due to ongoing financial challenges, the company has made the difficult decision to file for bankruptcy, and, regrettably, will be permanently closing its doors.”
In a letter to customers the same day, however, Iron Hill struck a more positive tone. “We sincerely hope to return in the future, and when we do, we promise to welcome you with open arms,” management wrote in a message posted on social-media pages and taped to the doors of 16 shuttered restaurants across the region.
Former Iron Hill restaurants — many of which occupied expansive properties in prime locations — now sit empty in Center City, Exton, Huntingdon Valley, Maple Shade, Media, Newtown, North Wales, West Chester, and Wilmington.
Iron Hill workers still in shock
It remains unclear how many Iron Hill workers lost their jobs. Several former employees told The Inquirer that they received their final paychecks on time, despite the company’s financial straits.
Iron Hill filed a Worker Adjustment and Retraining Notification (WARN) notice in New Jersey indicating 108 employees lost their jobs at its Maple Shade and Voorhees restaurants, the latter of which closed in early September. Pennsylvania labor officials said they had not received a notice from Iron Hill.
The WARN Act generally requires companies to give 60 days notice of mass layoffs, but there are several exceptions, including for “unforeseeable business circumstances” and “faltering companies.”
Several former Iron Hill employees said Monday that they were still in shock over having lost their jobs without notice.
Brian Hayes, 49, of New Castle, said being a line cook at the Wilmington restaurant was “one of my favorite jobs I’ve ever had.” He had a great boss and coworkers, he said, and Iron Hill paid him well. Hayes said he worked 39 hours a week, made $18.50 an hour, and was set to receive a raise this month. His earnings allowed to save a lot of money, enough to take a few weeks off before he figures out what comes next.
While he heard rumors that the business wasn’t doing well over the past six months, he said he was “incredulous” when he arrived at work on the morning of Sept. 25 to find the doors locked. His manager came out to deliver the news.
At the Hershey restaurant, server Jennifer Mondoro said she felt a similar shock when she saw the message from management just hours before her night shift on Sept. 25.
“They just shut the doors on us,” said the 43-year-old Hummelstown resident. “They did give us our last paycheck, thank God … [but] we haven’t heard anything else.”
Within days of Iron Hill closing, Mondoro said she was hired as a server at nearby restaurant.
Looking back, Mondoro said she questioned some of Iron Hill’s recent decisions, including making employees take a nine-week “summer school” training program that culminated in a four-hour menu test. Employees had recently received new uniforms, she said, and were encouraged to sell customers King of the Hill memberships until the final day.
Mondoro said she knew of one customer who was saving more than $2,000 in rewards on a King of the Hill membership. She said the customer intended to use the funds to buy holiday gift cards.
What customers with Iron Hill gift cards can do
Some Iron Hill customers with gift cards may be out of luck. Others may be able to get relief, if they’re willing to take a few steps, experts say.
“When a restaurant or store closes, gift cards for that business are most likely worthless, unless it’s part of a parent company that is still operating,” said Teresa Murray, consumer watchdog director with the U.S. Public Interest Research Group. Iron Hill does not have a parent company.
Gift-card holders can try to file a claim through the bankruptcy process, but as lowest-priority creditors, they are unlikely to receive refunds, experts say.
If a gift card was purchased with a credit card, and it’s still within 60 days of the statement on which the charge appeared, the buyer is legally obligated to a refund under the Fair Credit Billing Act. Murray said customers should dispute the transaction with their card issuer.
» READ MORE: Unused gift cards can feel like wasted money. Here’s what to do if you have them after a store goes out of business.
Consumers could also file a complaint with their state attorney general’s office, Murray said, “especially if there were indications the restaurant kept selling gift cards once it knew it was going to close.”
The Pennsylvania Attorney General’s Office has received complaints “about gift cards that were purchased and cannot be used,” according to the bankruptcy filing.
The office is monitoring the situation, said spokesperson Brett Hambright, and “asking any consumer who feels they have been harmed to file a complaint with our Bureau of Consumer Protection.”
Complaints can be filed online at attorneygeneral.gov/submit-a-complaint/consumer-complaint. The bureau can also be reached by phone at 717-787-9707.
The New Jersey and Delaware offices of attorneys general could not immediately be reached for comment Monday afternoon.
Murray noted that other restaurants will sometimes accept all or some of an otherwise-unusable gift card, or offer customers a discount.