The U.S. craft spirits industry faces financial challenges, with declining sales and reduced investment affecting nationwide distilleries. Joining other businesses in the sector, Seattle-based bourbon distillery 2BAR Spirits has filed for Chapter 11 protection.
Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. 2 Bar, LLC has filed under Subchapter V of Chapter 11, a streamlined process available to qualifying small-business debtors. A Chapter 11 filing does not necessarily mean that a business is closing. For additional information, readers are encouraged to contact the business directly.
2 Bar, LLC Files for Bankruptcy
Court records, as available on PACER, show that the company submitted its petition on October 30. The proceedings are taking place in the U.S. Bankruptcy Court for the Western District of Washington.
According to the American Craft Spirits Association’s 2026 Craft Spirits Data Project, craft spirits sales volume declined 8% in 2025. The value of craft spirits sales also declined 3.7%. The industry also recorded a 35.1% drop in total business investment, which fell from $811 million in 2024 to $526 million in 2025.
The project results add that the number of active craft distillers decreased 6.6% year over year, with closures outpacing new openings for the first time.
Case Related Details
Court records identify 2 Bar, LLC as a small business debtor, adding that it has opted for a Subchapter V filing.
The records further show that the company submitted a summary of assets and liabilities. While the company’s liabilities were estimated at around $1.07 million, its assets were approximately $155,976.
The filing also lists the company’s largest unsecured creditors. These claims were tied to credit card, term debt, bottles & corks, and other areas.
Some unsecured creditors on the list were Bank of America, Chris Comair, Trysk Print Solutions, and others.
The records also include a list of equity security holders, which shows that the company has 23 equity holders in total. Nathan Kaiser holds the largest ownership interest at 64.94%, while Jon Mavor holds the smallest at 0.17%.
Kaiser is also mentioned in the records as the company’s founder and managing member.
Attorney Steven M. Palmer of Cairncross & Hempelmann, P.S. is representing the company in court.
A summary of the Chapter 11 petition is shared here:
- Filing Date: October 30, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Western District of Washington
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-13494
- Estimated Assets: Between $100,001 and $500,000
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
About the Company
2 Bar, LLC, doing business as 2BAR Spirits, operates as a bourbon distillery. Founded in 2010, the company takes its name from the 2BAR ranch owned by Nathan Kaiser’s family in South Texas.
The distillery produces bourbon and describes its operations as grain-to-glass, using grains from the Pacific Northwest. Its team includes Kaiser, Head Distiller Madeline Kelly, and Distiller Sonie Watson. The company lists retail locations across Washington, including stores in Seattle, Spokane, and Port Townsend, and operates a tasting room and distillery in Seattle.
Several other distillery companies have turned to bankruptcy protection in recent months.
Spirits of the USA LLC submitted its petition on May 15. Case records showed that the distillery and spirits brand faced a gap between its assets and liabilities. The Georgia-based company has been offering its services for around 19 years.
A San Antonio-based company commenced Chapter 11 proceedings on May 1. The petition showed that Devils River Whiskey decided to proceed using Subchapter V. The company has been providing its services across 36 states for around nine years.
As the case proceeds under court supervision, 2 Bar, LLC’s financial footing could be reshaped amid industry pressures.
