The spirits industry has long been a symbol of celebration and indulgence.
But in recent years, it has faced challenges that are anything but festive. From shifting consumer habits to soaring costs, even some of the biggest names are feeling the pressure.
Stoli Group, a major vodka distributor, is the latest casualty in a year marked by financial strain across the sector.
Stoli Group has filed for Chapter 11 bankruptcy after racking up debts totaling $78 million, according to El Economista.
The filing was made on November 27 in the U.S. Bankruptcy Court for the Northern District of Texas.
The company’s assets are estimated to be between $100 million and $500 million, with liabilities ranging from $50 million to $100 million.
Demand has Declined
The bankruptcy documents reveal a list of creditors, including $6.1 million owed to SPI Worldwide Trade Ltd. and nearly $884,000 to Motive Marketing Group.
Other notable debts include $539,000 to the Los Angeles Dodgers and $275,000 to the NFL’s New Orleans Saints. These debts paint a picture of a company grappling with widespread financial obligations.
Stoli attributes its financial troubles to a combination of factors. Demand for spirits has declined since the pandemic, and global inflation has driven up operating costs.
In August 2024, a ransomware attack and a severe data breach further destabilized the company. A credit dispute with Fifth Third Bank added to its mounting challenges, according to CEO Chris Caldwell.
This isn’t the first time a prominent spirits company has filed for bankruptcy this year.
Other brands, including Lee Spirits Co. and Montana Distillery, have faced similar fates, reflecting broader struggles within the industry.
Despite its storied history and wide recognition, Stoli Group is now navigating an uncertain path. Its restructuring under Chapter 11 aims to address these financial woes while providing a framework for recovery.
