Developer of Keg & Case Market in St. Paul files for bankruptcy

The developer behind St. Paul's Keg and Case Market has filed for Chapter 7 bankruptcy, revealing more than $11 million in debts.

The filing by Craig Cohen was officially received on Friday. It names Keg & Case Market LLC, Keg & Case Park LLC, Rathskeller Holding LLC and Schmidt Keg House Holding LLC as codebtors.

According to the filing, Cohen owes about $11.6 million to around 50 creditors.

The biggest creditor is MidWestOne Bank, which took over ownership of the business in October 2023 after suing Cohen and others in April, alleging Keg and Case ownership defaulted on millions in loans. It sought to foreclose on the property and sell it for redevelopment.

Keg and Case opened in 2018 with more than 20 tenants, but struggled to return to vibrancy after taking a hit during the pandemic.

The building houses only a handful of businesses. Clutch Brewing Co. closed in late 2023 .

As of Tuesday, Keg and Case's website lists only three vendors — Five Watt Coffee, Starcade and Bad Penny Pinball, and Sána CBD — and remains open.

The $10.4 million redevelopment of the former Schmidt Brewery facility was aided by public funding, tax credits, Tax Increment Financing (TIF) and grants.

"This is a difficult ending for my family and I. We have committed many years to the revitalization of the West Seventh community, and remain proud of all that has been accomplished with the help of so many," Cohen told the Star Tribune in a statement on Monday.

"While I still believe in the vision for Keg and Case Market and the Rathskeller, the challenges we encountered from the COVID-19 pandemic were too significant to overcome. As a result, I have had to make this impactful decision to file for bankruptcy relief."