Popular vodka company files Chapter 7 bankruptcy to liquidate

Industry Overview - The spirits industry is experiencing significant financial distress due to several factors, including the lasting effects of the Covid-19 pandemic, rising operating costs from inflation, a decline in demand for alcoholic beverages, and various legal issues [1] Bankruptcy Filings - A number of distilleries have filed for bankruptcy in 2025, including Boston Harbor Distillery, which filed for Chapter 11 on March 31 to reorganize its business [2] - Following Boston Harbor, House Spirits Distillery filed for Subchapter V bankruptcy on April 6, and Devils River Distillery filed for Chapter 11 on May 1 to continue operations [3] - Other notable bankruptcies include SVG 26 LLC on September 25 and 52eighty Distilling Corporation on October 14, with A.M. Scott Distillery filing for Chapter 11 on December 22 [4] Stoli Group Developments - Stoli Group USA and Kentucky Owl initially filed for Chapter 11 bankruptcy on November 27, 2024, due to severe financial distress from over $78 million in secured debt [7] - On January 15, 2025, Stoli Group sought to convert its Chapter 11 filing to Chapter 7 liquidation after failing to reach an agreement with its senior lender [5] - Control of the U.S. entities will be transferred to a court-appointed trustee to oversee the liquidation process [6]