$250M distillery hits Chapter 7 bankruptcy-like receivership

A fig of cardinal whiskey brands and distilleries filed for bankruptcy successful 2025.

That's astatine slightest partially owed to weakening demand.

"The winds person shifted from unbridled enlargement to measured recalibration. After a decennary of accordant double-digit growth, U.S. whiskey volumes fell 4.1% successful 2024, according to the Distilled Spirits Council of the United States (DISCUS). Domestic lawsuit shipments dipped for the archetypal clip since 2008," Lane Report shared.

And portion 2025 numbers person not been afloat reported, the American Distilled Spirits Exports 2025 Mid-Year Report showed immoderate troubling drops successful exports.

"Following a banner twelvemonth for U.S. distilled spirits exports successful 2024, exports of American spirits fell 9% year-over-year successful the 2nd quarter, driven by ongoing commercialized tensions," according to the report released by DISCUS.

The study showed immoderate immense declines.

• U.S. spirits exported to Canada plummeted 85%, falling beneath $10 cardinal successful the 2nd 4th of 2025.
  U.S. spirits income successful Canada declined 68% successful April 2025, whereas income of Canadian and different imported spirits roseate astir 3.6% each.

• Canada removed its retaliatory tariff connected U.S. spirits connected Sept. 1, but the bulk of Provinces proceed to prohibition American spirits from their shelves.

• U.S. spirits exports experienced notable declines crossed each cardinal planetary markets. Exports to the EU, the U.S. spirits industry’s largest market, fell 12% to $290.3 million, portion exports to the UK dropped 29% to $26.9 cardinal and those to Japan decreased 23% to $21.4 million.

Add that to American consumers struggling with the system and cutting backmost connected discretionary spending, and you tin spot wherefore distilleries person struggled.

The nonaccomplishment of Garrard County Distilling Co. (GCDC), however, can't beryllium blamed solely connected exports oregon a weakened economy. It simply takes much than those 2 things to spell done $250 cardinal successful 14 months.

"A Kentucky distillery that closed this twelvemonth aft little than 14 months successful cognition owes astatine slightest $28 million, according to a brace of caller lawsuits against the company. Much of the wealth is owed to Truist Bank, which filed suit April 11 claiming the institution had defaulted connected indebtedness payments for much than 5 months," the Lexington Herald Leader reported.

In summation to producing All Nations Bourbon, Rye Whiskey, and American Single Malt, GCDC was billed arsenic Kentucky's largest autarkic distillery and adjacent offered tours. It was a $250 cardinal task that has present been placed successful receivership.

Technically, the institution has not filed for bankruptcy, but the receivership works a batch similar a Chapter 7 bankruptcy.