Kentucky whiskey bankruptcies: Which dilleries are broke, and why

Kentucky whiskey dilleries are finding operations are nowhere as smooth as the drinks they produce. Amid a gamut of problems, several dilleries have filed for bankruptcy. This January, Jack Daniel’s parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go. Image for representation.(Unsplash) As per the Kentucky Dillers’ Association, the state’s bourbon and whiskey industry is estimated to be around $9 billion. This comes amid an overall tough time for the American spirits and wine industry, which is seeing job cuts in an effort to remain profitable as the trading environment becomes more and more uncertain. This January, Jack Daniel’s parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go, and that they were shutting down a barrel-making plant in Louisville, Kentucky. So, which Kentucky dilleries have filed for bankruptcy? Kentucky dilleries that filed for bankruptcyLMD Holdings, the parent company of Luca Mariano Dillery, which is based out of Danville, filed for Chapter 11 bankruptcy. Court filings, accessed Newsweek, show LMD Holdings has significant debt, including a “likely claim of over $25,000,000” which it owes to its largest creditor. Meanwhile, the Lexington Herald-Leader reported that some claims are under dispute. The filing came just weeks after it launched in June, with owner Francesco Viola telling the publication that the move meant to ‘maximize the value of the assets for all stakeholders’ and that the company was ‘poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.’ This is not the only such case. Garrard County Dilling, a $250 million independent dillery, which started production in early 2024, was closed in April to settle unpaid debts. Stoli Group USA filed for bankruptcy late in 2024, along with affiliate, the Kentucky Owl whiskey. Recently, the sale of Kentucky bourbon Wild Turkey has seen a slump as well. Campari Group, which owns the brand and its Lawrenceburg and Danville dilleries, reported in its half-year results that sales of Wild Turkey and Russell’s Reserve fell 8.1 percent year-on-year “due to a soft trend for Wild Turkey in its core United States market.” Why are so many dilleries filing for bankruptcy?Some of the challenges Kentucky dilleries are facing include cost-pressed consumers, shifting preference of young drinkers away from whiskey, and the potential impact of tariffs on sales in key export markets. Notably, these factors are also impacting other dilleries across the US. Stoli, meanwhile, filed for bankruptcy on the back of a sustained slowdown in spirits demand in the US, and a cyberattack that took down most of its operations, CNN reported.