As bankruptcy filings continue to ripple through the U.S. spirits industry, another well-known name has entered the spotlight. Stoli Group, the global spirits company behind Stoli Vodka, is facing fresh financial pressure as its two U.S. subsidiaries move to liquidate assets under Chapter 7 bankruptcy.
Stoli Group Subsidiaries Seek Chapter 7
According to PR Newswire release, Stoli Group USA, LLC and Kentucky Owl LLC entered Chapter 11 restructuring in November 2024. However, the entities have now decided to switch to Chapter 7 liquidation.
Under Chapter 7, a court-appointed trustee will take control of Stoli Group USA, LLC and Kentucky Owl LLC and oversee the liquidation process.
Details of Stoli Group USA’s Chapter 11 Filing
According to the details available on PACER, Stoli Group USA, LLC, a U.S.-based subsidiary of spirits brand Stoli Group, had originally filed for Chapter 11 on November 27, 2024. The proceedings were being conducted in the U.S. Bankruptcy Court for the Northern District of Texas.
Court filings listed creditors between 200 and 999. Court records show the following details from the initial Chapter 11 filing:
- Filing Date: November 27, 2024
- Court and Jurisdiction: U.S. Bankruptcy Court for the Northern District of Texas
- Type of Filing: Voluntary Petition
- Chapter: 11
- Case Number: 8:24-bk-80146
- Estimated Assets: $100,000,001 to $500 million
- Estimated Liabilities: $50,000,001 to $100 million
- Reason for Filing: Restructure business under court supervision
However, it seems the reorganization attempt by Stoli Group USA, LLC failed, as on January 14, 2026, filed an emergency motion under the U.S. Bankruptcy Code requesting that the case be converted to Chapter 7 liquidation.
The Official Committee of Unsecured Creditors also submitted an emergency motion for an order Pursuant to Sections 1112(B) and 105(A) of the Bankruptcy Code. Through it, the committee requested to convert the case of Stoli Group (USA), LLC under Chapter 7 of the Bankruptcy Code.
Recent Wave of Bankruptcy in the U.S. Distillery Industry
The bankruptcy trouble faced by the Stoli Group is not the only case for the distillery industry in recent times. Last year alone marked a series of filings by a range of distillery brands spanning across the country.
J.J. Pfister Distilling Company from Sacramento entered bankruptcy in May 2025 after already going through six months of permanent closure. During its filing in the U.S. Bankruptcy Court for the Eastern District of California, the distillery stated that it then owed a debt of $1.6 million. Bank of America, Overton Funding, Fite Bypass Trust, and other tax authorities were some of its creditors.
SVG 26 LLC, a local distillery in New York, which was founded in 2010, submitted its Chapter 11 petition last year on September 25. In the U.S. Bankruptcy Court for the Eastern District of New York, the distillery, operating as Alton Distillery, mentioned below 50 creditors and shared plans to reorganize debts through the proceedings.
Luca Mariano Distillery, LLC filed for Chapter 11 bankruptcy on November 12 last year in the U.S. Bankruptcy Court for the Eastern District of Michigan. With its services spread to nearly 18 states, the distillery brand from Danville, Kentucky, intended to restructure mounting debts. Distribution of whiskeys and bourbons was going to continue as normal.
About Stoli Group
Established in 2013, Stoli Group produces, manages, and distributes a wide range of spirits across the world. The spirits company is particularly popular for its Stoli Vodka brand. Through the years, Stoli Group has expanded to several other signature brands, such as Elite Vodka, Kentucky Owl, Gator Bite Rum Liqueurs, Bayou Rum, Se Busca Mezcal, and Cenote Tequila.
As of now, Stoli Group operates across 176 markets with the help of 200 distributors worldwide. While the headquarters is in Luxembourg, its production facilities are spread across Italy, Argentina, the United States, and Spain.
Impact on U.S. Operations and Global Reach
The latest shift in bankruptcy type from Chapter 11 to Chapter 7 affects Stoli Group USA, LLC, and Kentucky Owl LLC only. All other U.S. and non-U.S. operations of parent entity Stoli Group are set to continue as usual. This covers SPI Spirits (Cyprus), Louisiana Spirits, and other global production facilities.
As Stoli brands have adequate inventory despite the bankruptcy-related developments, customers in the U.S. market can continue to purchase their favorite spirits. In addition, the production facilities and distribution networks of the global business of Stoli Group are also sure to operate normally both inside and outside the U.S.
Ongoing External Pressures: A 25-Year Struggle
Stoli Group has been facing more than 25 years of legal disputes with the Russian state regarding the ownership and control of the brand. In recent years, these pressures have deepened with the Stoli Group condemning Ukraine’s invasion and publicly opposing the invasion and calling for an end to the conflict.
According to the news release by PR Newswire, the Russian government declared the Stoli Group to be an ‘extremist organization’ in Russia. Right after this, the company’s distillery in Russia was confiscated, and the government took control of it. Troubles did not end for Stoli as it was further hit by a massive cyberattack that hampered international operations and disrupted systems integral to global distribution.
With the latest attempt of Stoli Group’s U.S. subsidiaries to convert their bankruptcy filing to Chapter 7, the entities are set to proceed with asset liquidation, reflecting continued financial strain within the American distillery sector.
