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Stoli Group’s US arm files for bankruptcy
The US subsidiary of Stoli Group, owner of Stoli vodka and Kentucky Owl Bourbon, has filed for chapter 11 bankruptcy protection, amidst financial difficulties for the business.
On 27 November 2024, Stoli Group (USA) LLC, alongside its affiliate Kentucky Owl, LLC, filed for bankruptcy in the United States Bankruptcy Court for the Northern District of Texas. Court documents reveal the company listed more than US$100 million in assets and between US$50 million and US$100 million in liabilities.
Stoli Group owns a diverse portfolio of premium spirits and wines, including its flagship vodka brand distilled in Latvia, the super-premium Elit vodka, Villa One Tequila, Achaval Ferrer wine and Bayou rum.
Kentucky Owl’s offerings, ranging from affordable to exclusive Bourbons priced at US$400 a bottle, also form part of the company’s portfolio.
Chris Caldwell, global CEO of Stoli Group, described the filing as a proactive measure to secure the company’s future. In a statement shared with db, Caldwell said, “In order to protect our business, our brands and our people, we have made the proactive decision to file for voluntary chapter 11 bankruptcy protection while we restructure the company for future success. This filing includes our two US entities (Stoli Group USA LLC and Kentucky Owl LLC) and was filed in the United States Bankruptcy Court for the Northern District of Texas.”
The company, which officially changed its name from Stolichnaya in 2022 to distance itself from Putin’s Russian regime (despite technically being a Latvian product), stressed that operations will continue as normal during the restructuring period.
“The business will continue to trade normally as we work through this process. All of our amazing brands will continue to be available to trade and consumers, and we will continue to work with our trade partners to drive the brands forwards and deliver our award-winning brands with no disruptions,” Caldwell added.
Stoli Group’s bankruptcy case has been designated as a complex chapter 11, allowing the business to reorganise its assets and liabilities to restructure debts and remain in business. The restructuring process is anticipated to conclude in the first half of 2025.
The filing adds to the challenges faced by Stoli Group, following an announcement in July 2024 by Russia’s prosecutor general’s office labelling Yuri Shefler, the brand’s owner, as an “extremist.”
The designation was accompanied by the confiscation of Shefler’s assets in Russia, reportedly linked to allegations of financial support for Ukraine. Shefler, exiled from Russia since 2000 and embroiled in a long-running dispute over Stoli’s brand ownership, launched a limited-edition bottle in 2022, in solidarity with Ukraine, featuring the Ukrainian flag and the slogan “#LiberateUkraine.”
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