Stoli Group USA, maker of the inexpensive vodka of the same name, has filed for Chapter 11 bankruptcy in the USA and strives reconcile your finances after a series of fights.
The company said it was “experiencing financial difficulties” in his submission and has liabilities ranging between $50 and $100 million. The company’s products will remain on store shelves through the process, and the bankruptcy filing only affects the company’s US operations.
Stoli has faced a number of challenges in the recent past. Overall, the spirits business is suffering as more Americans, particularly younger Americans, who used to buy Stoil vodka, turn away from spirits and alcohol in general—and the latest data from the Wine and Spirits Wholesale Association of America (WSWA) indicates that the trend is likely to continue. (Spirits sales fell almost 4% year-on-year in the 12 months to August 2024.)
A former marketing hook is also back to haunt the brand. Until 2022 Table was sold as Stolichnaya in the US and was implied to be a Russian product. However, Russia’s invasion of Ukraine led to a boycott, and the company had to re-educate customers that Stoli was actually made in Latvia — and its Russian-born founder was expelled from the country in 2000. The company said it was engaged in a protracted legal battle with Russia government, which also affected its finances.
On top of that, Stoli Group says it was the victim of a significant cyber attack that forced it to rebuild its systems and work manually while trying to do so.
Stoli group also owns Kentucky Owl Bourbon, Villa One Tequila, Achaval Ferrer Wine and Bayou Rum.
