The developer behind St. Paul’s Keg and Case filed for bankruptcy Friday, claiming $11.6 million in liabilities that includes a range of business debts.
Developer of St. Paul’s Keg & Case food hall declares bankruptcy
Craig Cohen listed the W. 7th neighborhood project when filing for Chapter 7 bankruptcy with more than $11 million in liabilities.
The Minnesota Star Tribune
April 23, 2024 at 12:42AM
Craig Cohen listed Keg & Case Market LLC, Keg & Case Park LLC, Rathskeller Holding LLC and Schmidt Keg House Holding LLC as codebtors in the filing for Chapter 7 bankruptcy, an option available to individuals and businesses seeking to terminate their enterprises. The 74-page filing lists nearly 50 creditors and about $1.5 million in assets, most of which is the value of a single-family home.
“This is a difficult ending for my family and I,” Cohen said in a statement Monday. “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. 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.”
Keg and Case opened in September 2018 at the former Schmidt Brewery, a historic property on the up-and-coming W. 7th Street corridor. Public money helped finance the $10.4 million project — which grew more expensive thanks to historic rehab and environmental abatement costs as well as construction delays — including $3 million in state historic rehabilitation tax credits, $1.5 million in Tax Increment Financing (TIF) and $205,000 in state grants, according to the St. Paul Housing and Redevelopment Authority (HRA).
Friday’s bankruptcy filing lists $500,000 owed to the HRA, which loaned Schmidt Keg House Holding LLC an additional $200,000 in 2019. The city referred to the $200,000 loan when asked about the contingent $500,000 claim which, like many of the claims listed, is disputed.
MidWestOne Bank is the single largest creditor, with more than $5.7 million owed. Iowa-based MidWestOne took ownership of Keg and Case late last year after the food hall and market defaulted on the bulk of a more than $8 million loan.
The nearby Schmidt Rathskeller, which the city sold to Cohen for $1 in 2017, went into foreclosure in March 2023.
Keg and Case remains open. Its website lists three vendors, down from about two dozen when it launched.
The party supply company told employees on Friday that it’s going out of business.
