Parent company of Kentucky Owl bourbon files for bankruptcy, moves to liquidate operations

LOUISVILLE, Ky. (WDRB) -- The parent company of Kentucky Owl bourbon is moving to liquidate its U.S. operations after efforts to reorganize failed.

That's according to a report from our partners at Louisville Business First.

Stoli Group USA LLC and Kentucky Owl LLC announced last week that they're looking to convert their Chapter 11 bankruptcy cases into Chapter 7, a move that would place the companies under the control of a court-appointed trustee and begin the process of selling off assets.

The companies originally filed for Chapter 11 bankruptcy in November 2024, saying at the time the restructuring would allow them to continue operating. More than a year later, Stoli Group said it was unable to reach an agreement with its senior lender that would allow the two U.S. entities to emerge as ongoing businesses.

Under Chapter 7, a trustee will oversee the liquidation of assets and repayment of creditors. Stoli Group said the move affects only its U.S. entities and does not impact its global operations or other U.S. brands, including Louisiana Spirits.

The bankruptcy has had ripple effects in Kentucky’s bourbon industry. Kentucky Owl previously listed Bardstown Bourbon Co. as its largest unsecured creditor, owed more than $5.5 million. The brand also announced plans in 2022 for a $150 million distillery and tourism project in Bardstown, though construction has not begun and the project’s future is now uncertain.

Stoli Group cited geopolitical pressures, a cyberattack and a slowdown in the U.S. spirits market as factors that contributed to the decision. The company said it expects existing inventory to keep products available to consumers in the near term.

The bankruptcy court will determine how assets are sold and how proceeds are distributed as the case remains ongoing.

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