Vodka maker Stoli Group USA has filed for bankruptcy protection after facing pressure from a downturn in demand for spirits and the likes of ongoing Russian legal woes.
“Financial difficulties” and between $50 million and $100 million in liabilities were cited in the Stoli vodka and Kentucky Owl bourbon maker’s Chapter 11 filing on Monday.
Bankruptcy would only affect its US business, the filing added, with brands set to remain available during the process as Stoli looked to restructure its finances with creditors.
Stoli, which also owns other spirit and wine brands, follows California's Vintage Wine Estates in falling into bankruptcy this year.
The major US wine producer had pointed to a decline in demand after the pandemic lockdowns when it filed for Chapter 11 in July.
Stoli has also faced pressure in the wake of Russia’s invasion of Ukraine in 2022, which prompted a rebrand, adding to woes after targeting of founder Yuri Shefler by the Kremlin since his exile due to opposition to president Vladimir Putin in 2000.
“Dozens of millions of dollars” have been spent on long-term court proceedings as a result, Stoli said in the filing, highlighting accusations by the country against its Russian-born founder made earlier this year.
Alongside this, Stoli pointed to a “malicious cyber attack” that had forced it to operate “entirely manually while the systems are rebuilt”.