Farewell to this classic bourbon? After 5 years in trouble, Chapter 11 bankruptcy

A bankruptcy filing by drinks manufacturer Stoli Group USA has cast doubt on the much-loved Kentucky Owl whiskey brand.

The popular bourbon rose to prominence in 2014 when Kentucky businessman Dixon Bedman brought back the brand founded by his grandfather in 1879. The reincarnated version was an instant success and was purchased by Stoli in 2017.

However mounting financial problems with Stoli have put the brand’s future in doubt. The news stems from a November 29 filing from Stoli Group, in which it filed bankruptcy with liabilities of $50-$100 million. It said that the parent company was struggling with the economic consequences of the covid-19 pandemic and had recently been struck by a cyberattack. Stoli Group chief executive Chris Caldwell said that the company was targeted in a “malicious cyberattack” that meant forced them to operate “entirely manually while the systems are rebuilt.”

The news also seems to have eliminated any hopes of progress on the proposed Kentucky Owl Park distillery and visitor center in Bardstown, Kentucky. The plans were initially announced after the brand’s acquisition in 2017 but the 420-acre campus has suffered a string of delays.

Financial issues for Stoli Group

In the November filing, Stoli Group USA said it was “experiencing financial difficulties” and asked for time to work through a restructuring plan with creditors. It came just months after Californian brand Vintage Wine Estates filed bankruptcy in July.

The Stoli Group is owned by exiled Russian billionaire Yuri Shefler, who was exiled from Russia two decades ago. The Kentucky Owl whisky is popular but the company’s flagship brand is Stoli vodka. Whiskey Advocate reports that more than a million cases a year are sold, but that figure has been dropping from a peak of 1.8 million in 2020.

But for now, Stoli vodka and Kentucky Owl whiskey will continue to be sold in the United States and it seems likely that Stoli Group will be able to restructure debts to allow production to continue.

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