A distillery and spirits brand from Cumming, Georgia, has sought Chapter 11 protection after around 19 years in business. Spirits of the USA LLC is known for its distillery and the range of drinks under the Legends Distillery brand.
Case filings indicate the company sought protection following financial struggles, including a decline in gross revenue since 2024. In addition, it has reported a wide gap between its estimated range of assets and liabilities.
Spirits of the USA LLC Files for Chapter 11
The company made a voluntary filing on May 15, 2026, as the distilled spirits industry continues to face a downturn. Case filings, as available on PACER, state that it has decided to proceed under Subchapter V after qualifying as a small business debtor.
This type of filing allows businesses to move through bankruptcy proceedings more quickly and cost-effectively than traditional Chapter 11 cases.
According to the Distilled Spirits Council Annual Economic Briefing 2025, the export of spirits from the U.S. faced a 9% decline year-over-year in the second quarter of 2025. The President & CEO of the Distilled Spirits Council of the United States cited global trade issues for the latest condition.
The briefing report added that the sales of vodka faced a 3% drop, reaching the $7 billion mark. At almost $5.1 billion, the American whiskey sales also slipped, marking a 0.9% decline.
Petition Shows a Decline in Gross Revenue
Case records reflect a decrease in the gross revenue figures of Spirits of the USA LLC from 2024 to the date of filing. While the value was more than $767,000 in 2024, it declined to approximately $337,000 the next year.
The gross revenue of the distillery and spirits company this year, up to the filing date, was listed as a little over $107,000.
Highlights from the Filing
The summary of assets and liabilities, as given in the petition, shows a wide gap between the two values. According to it, Spirits of the USA LLC has total assets of around $887,987. The company’s liabilities have been listed as $1,642,300.
The filing lists several creditors holding the company’s largest unsecured claims. Some of these include Atlanta Beverage Company, BPS Glass, Forsyth County Property Tax, and Avron Properties.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
Michael Gerard is the authorized representative who signed the petition.
Other key details listed in the Chapter 11 petition are shared here:
- Filing Date: May 15, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Georgia
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-20875-jrs
- Estimated Assets: Between $500,001 and $1 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: Between 1 and 49
- Reason for Filing: Restructure business under court supervision
About the Company
According to its LinkedIn page, Spirits of the USA LLC has been in business since 2007. It was founded by Michael Gerard, along with Kenny May, the founder of Clyde May’s Whiskey, and Johnny Allen, a mechanical production expert with 40-plus years of experience in the food and beverage industry.
The company’s website was unavailable at the time of reporting. As a result, the status of its distillery and tasting room is not available.
Case filings mention that the company is operating as Legends Distillery. According to PR Newswire, the company had over 42 awards by 2022. The honors included Best in Class Platinum, Vodka of the Year, Double Platinum, and Double Gold. The same year, it received the Consumers’ Choice Award at the SIP Awards.
The latest filing outlines the financial troubles impacting the distillery industry, including falling sales and declining exports. Despite its award-winning history, the company is seeking to stabilize its finances through the bankruptcy process.
