Troubled whiskey company falls into Chapter 7-like liquidation

Industry Overview - A number of key whiskey brands and distilleries filed for bankruptcy in 2025, attributed to weakening demand and a shift from rapid expansion to measured recalibration [1] - U.S. whiskey volumes fell 4.1% in 2024, marking the first decline in domestic case shipments since 2008 [1] Export Trends - U.S. distilled spirits exports fell 9% year-over-year in the second quarter of 2025, following a strong performance in 2024, primarily due to ongoing trade tensions [2] - Exports of U.S. spirits to Canada plummeted 85%, dropping below $10 million in the second quarter of 2025, with sales in Canada declining 68% in April 2025 [6] - Exports to the EU, the largest market for U.S. spirits, fell 12% to $290.3 million, while exports to the UK dropped 29% to $26.9 million and those to Japan decreased 23% to $21.4 million [6] Company-Specific Issues - Garrard County Distilling Co. (GCDC) faced significant financial difficulties, owing at least $28 million, primarily to Truist Bank, and has been placed in receivership after less than 14 months of operation [4][5] - GCDC was a $250 million project and was marketed as Kentucky's largest independent distillery, producing All Nations Bourbon, Rye Whiskey, and American Single Malt [5]