Vodka maker Stoli Group USA files for Chapter 11 bankruptcy

Published On Dec 2, 2024, 3:12 PM

Stoli Group USA, the vodka producer, has filed for Chapter 11 bankruptcy due to significant balance sheet and liquidity challenges stemming from decreased demand for spirits post-pandemic, increased costs, inflation, a ransomware attack, and a disagreement with a lender. The company estimates its assets are valued between $100 million and $500 million, while its liabilities range from $50 million to $100 million. Despite the bankruptcy, the company will continue its operations and has plans to restructure its debts while preserving jobs through a joint plan of reorganization with its affiliate, Kentucky Owl.

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The bankruptcy of Stoli Group USA indicates serious financial distress, leading to uncertainty about the future performance of related companies or products. Investors should approach the alcoholic beverage sector cautiously, especially regarding companies facing similar pressures.

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