Stoli Group USA, the owner of Stoli vodka, is set to liquidate more than a year after failing to come up with a reorganisation plan that satisfied its creditors.
The group, along with its Kentucky Owl whiskey unit, said it had filed a motion to convert Chapter 11 bankruptcy proceedings into Chapter 7, enabling debt relief through asset liquidation.
Control of both units will now shift to a court-appointed trustee that will be tasked with overseeing asset liquidation and creditor distributions.
Other US and non-US operations were “completely unaffected” by the move and able to continue to operate as normal, Stoli Group said.
Stoli said ongoing disputes with the Russian state over the ownership and control of its flagship Stoli vodka brand had “intensified sharply” following its condemnation of the country’s invasion of Ukraine in 2022.
It was subsequently hit by “the confiscation and nationalisation” of its distillery in Russia, and “a large-scale, sophisticated cyberattack that targeted its international operations and impaired systems vital to global distribution”.
Its two US units had filed for Chapter 11 bankruptcy in November 2024, after these “geopolitical shocks” were compounded by “a slowdown in the US spirits market”.
Despite working for 13 months on “a viable reorganisation plan aimed at preserving jobs, stabilising operations, and protecting long-standing commercial partnerships”, Stoli said it had been “unable to reach an agreement with its senior lender” that would enable it to emerge from Chapter 11 proceedings as a going concern.
The company had “sufficient inventory” in the US and consumers would be able to continue purchasing its brands “for the foreseeable future”, it insisted.
Stoli Group’s flagship namesake vodka is distilled in Latvia and stocked by UK retailers including Tesco, Sainsbury’s and Ocado.
Its other brands include Bayou Rum, Villa One Tequila and Tulchan Gin.
The company is headquartered in Luxembourg and led by CEO Chris Caldwell.
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