A number of key whiskey brands and distilleries filed for bankruptcy in 2025.

That’s at least partially due to weakening demand.

“The winds have shifted from unbridled expansion to measured recalibration. After a decade of consistent double-digit growth, U.S. whiskey volumes fell 4.1% in 2024, according to the Distilled Spirits Council of the United States (DISCUS). Domestic case shipments dipped for the first time since 2008,” Lane Report shared.

And while 2025 numbers have not been fully reported, the American Distilled Spirits Exports 2025 Mid-Year Report showed some troubling drops in exports.

“Following a banner year for U.S. distilled spirits exports in 2024, exports of American spirits fell 9% year-over-year in the second quarter, driven by ongoing trade tensions,” according to the report released by DISCUS.

The report showed some huge declines.

  • U.S. spirits exported to Canada plummeted 85%, falling below $10 million in the second quarter of 2025.
    U.S. spirits sales in Canada declined 68% in April 2025, whereas sales of Canadian and other imported spirits rose around 3.6% each.
  • Canada removed its retaliatory tariff on U.S. spirits on Sept. 1, but the majority of Provinces continue to ban American spirits from their shelves.
  • U.S. spirits exports experienced notable declines across all key international markets. Exports to the EU, the U.S. spirits industry’s largest market, fell 12% to $290.3 million, while exports to the UK dropped 29% to $26.9 million and those to Japan decreased 23% to $21.4 million.

Add that to American consumers struggling with the economy and cutting back on discretionary spending, and you can see why distilleries have struggled.

The failure of Garrard County Distilling Co. (GCDC), however, can’t be blamed solely on exports or a weakened economy. It simply takes more than those two things to go through $250 million in 14 months.

GCDC, All Nations’ bourbon producer faces bankruptcy-like process

“A Kentucky distillery that closed this year after less than 14 months in operation owes at least $28 million, according to a pair of recent lawsuits against the company. Much of the money is owed to Truist Bank, which filed suit April 11 claiming the company had defaulted on loan payments for more than five months,” the Lexington Herald Leader reported.

In addition to producing All Nations Bourbon, Rye Whiskey, and American Single Malt, GCDC was billed as Kentucky’s largest independent distillery and even offered tours. It was a $250 million project that has now been placed in receivership.

Technically, the company has not filed for bankruptcy, but the receivership works a lot like a Chapter 7 bankruptcy.

The distillery’s parent company, Staghorn in Atlanta, did not immediately respond to a request for comment from the Herald Leader. Founder Ray Franklin, who left the company last year, was also not immediately available for comment, the paper reported.

What is a receivership?

“Receivership is a court-ordered remedy in which a neutral third party, called a receiver, is appointed to take possession of, manage, or preserve property that is the subject of ongoing litigation. The purpose of a receivership is to protect the property from neglect, waste, mismanagement, or dissipation while the legal dispute is pending or until final resolution,” according to Cornell Law School.

“A receivership can be initiated through a court order or by a private appointment,” according to Legal Clarity.

In the case of GCDC, the receivership was court-appointed, and the job of the receiver is to protect the assets so they can be liquidated.

The most common method is a court-appointed receivership, which begins when a party with an interest in certain assets, such as a creditor, files a request with a court. The petitioner must demonstrate that the assets are in danger of being lost or mismanaged.

If the court agrees that intervention is necessary, it will issue an order appointing a receiver and outlining their powers.

More Bankruptcy:

  • Key auto parts and services company files Chapter 11 bankruptcy
  • Key travel brand files for Chapter 11 bankruptcy
  • Self-driving-car company files for Chapter 11 bankruptcy protection
  • 35-year-old consumer company files Chapter 11 bankruptcy

With the consent of the distillery’s owners, receiver Aurora Management Partners Inc. was appointed by Garrard County Circuit Court Judge Hunter Daugherty to take over the distillery.

“Aurora is empowered to file for bankruptcy, or to operate and manage the business, as well as sell off some or all of the assets, subject to further orders of the court,” according to the Herald-Leader.

Falling demand hurt many distilleries in 2025.

Pixabay

GCDC closure and financial trouble

  • Garrard County Distilling Co. ceased operations in early 2025, furloughing workers and shutting down production after about 15 months in business, reported Weku.
  • The distillery, which opened in early 2024 with ambitious plans and significant investment, is currently in the hands of a court‑appointed receiver after being unable to pay debts and liens, according to Kentucky.com.
  • One construction firm has filed a $2.178 M lien against the company for unpaid labor and materials, and another lien of about $158,986 was filed for additional unpaid work, added LEX 18 News.
  • Property taxes for 2024, roughly $255,000, remain unpaid, with deadlines missed, shared LEX 18 News.
  • Creditor Truist Bank claims Garrard County Distilling owes more than $26 M, pushing the company into receivership with possible asset sale to satisfy debts.
  • Workers were furloughed and left in limbo as the shutdown stalled the distillery’s operations and future plans.
    Source: LEX 18 News
  • The company’s ambitious roughly $250 M distillery project, one of the largest new independent spirits facilities in Kentucky, now sits idle amid these financial pressures, reported The Whiskey Lab.

Workers were surprised by the shutdown.

“It was by far the best place I’d ever worked,” Brad Luttrell, who worked in maintenance, told Lex 18 News. “We could jump in and help the cookers, the barrelers, anything that we needed to do, we could jump in and help them at any time.”

Based on court filings, lender claims, and my coverage of multiple distillery failures this year, Garrard County Distilling’s collapse appears driven more by an unsustainable business model than by macroeconomic headwinds alone.

Key 2025 craft and regional spirits bankruptcies

  • A.M. Scott Distillery, LLC (Scotty’s Bottle Parlor): Filed Chapter 11 (Dec. 22, 2025), continues operations while restructuring amid rising costs, weak demand, and legal troubles for its owner, reported TheStreet.
    Source: PacerMonitor
  • House Spirits Distillery (Westward Whiskey): Portland craft whiskey distiller filed Chapter 11 (April 6, 2025) due to liquidity challenges and market contraction, according to PacerMonitor.
  • Boston Harbor Distillery: Craft spirits producer (whiskey, rum, gin) filed Chapter 11 (March 31, 2025), PacerMonitor reported.
  • Devils River Distillery LLC (San Antonio): Filed Chapter 11 (May 1, 2025); later had a bankruptcy reorganization plan rejected by a judge, clouding its future, according to Kirk O’Neil reporting for TheStreet.
  • JJ Pfister Distilling Co: Sacramento whiskey distiller filed Chapter 11 after cutting operations (May 2025), according to PacerMonitor filings.
  • Luca Mariano Distillery (LMD Holdings): Parent company filed Chapter 11 (Nov. 2025), reported PacerMonitor.
  • Dented Brick Distillery: Filed Chapter 11 (Jul 2025), added PacerMonitor.

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