Popular whiskey brand files Chapter 11 bankruptcy

Spirits distillers have been forced to reorganize their businesses and restructure debt, sometimes filing for bankruptcy, after rising operating costs from inflation and a decrease in consumer spending on alcohol after the Covid-19 pandemic led to a decline in profits.

Problems this year were preceded by financial issues in 2024. Spirits supplier sales in the U.S. declined 1.1% in 2024 for a total of $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025.

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Stoli USA, which distills vodka and other spirits, finished last year filing for Chapter 11 bankruptcy on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA.

Related: Another popular whiskey brand files for Chapter 11 bankruptcy

Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business.

The Dorchester, Mass.-based distiller was established in 2012 by Samuel Adams brewer Boston Beer Company’s co-founder Rhonda Kallman, a leader in the craft beverage industry.

House Spirits Distillery LLC, which makes Westward Whiskey, filed its Chapter 11 Subchapter V petition on April 6 in the U.S. Bankruptcy Court for the District of Delaware, listing $1 million to $10 million in assets and debts.

Over-expansion led to financial distress

The company filed its petition, suffering from financial distress after over-expanding just before the liquor market contracted, the company’s CEO Thomas Mooney told Breaking Bourbon, TheStreet’s Dan Kline reported.

Tacoma, Wash.-based McCallum & Sons Whisky Co., a premier boutique Scotch whisky and cognac bottle shop, revealed on its website that it is liquidating its inventory and closing permanently on April 30, 2025.

The company did not indicate whether it will file for bankruptcy.

McCallum & Sons in January posted a message on social media revealing that it was closing and liquidating its business.

“Closing. After much deliberation, we have decided to close the doors of McCallum & Sons Whisky Co. on April 30, 2025. We have appreciated you all being part of this journey with us,” the message said.

Devil’s River Whiskey files for bankruptcy

And now, popular whiskey brand Devils River Distillery LLC and an affiliate filed for Chapter 11 bankruptcy protection to reorganize their business and continue operating.

Related: Popular whiskey brand files for Chapter 11 bankruptcy

The San Antonio-based distiller of Devil’s River Whiskey, featuring five different bourbon whiskeys and a rye whiskey, opened for business in 2017 and has expanded to 36 states, five countries, and cruise lines offering premium and craft bourbons.

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The debtor listed $1 million to $10 million in assets and liabilities in its Subchapter V petition filed on May 1 in the U.S. Bankruptcy Court for the Western District of Texas. Its largest unsecured creditors include McDermott, Will & Emory, owed over $317,000; Sazerac, owed over $258,000; AREA Real Estate, owed over $132,000 and Romph & Pou Agency, owed over $83,000.

The debtor is expected to have funds available to distribute to its unsecured creditors.

Devil’s River Whiskey’s products include Bourbon Whiskey, Barrel Strength Bourbon, Coffee Bourbon, Agave Bourbon, Cinnamon Bourbon, Single Barrel Straight Bourbon, and Rye Whiskey, which are available at 100s of restaurants and retail locations in 36 states.

Related: Popular liquor brand files for Chapter 11 bankruptcy

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