Stoli Group's US unit has filed for Chapter 11 bankruptcy in a bid to safeguard its business operations, brands and personnel.

The protection, which covers the company's Stoli Group USA LLC and Kentucky Owl LLC entities, was submitted to the United States Bankruptcy Court for the Northern District of Texas.

The brands reportedly listed over $100m in assets and between $50m and $100m in liabilities, according to Bloomberg.

In a statement, Stoli Group global CEO Chris Caldwell said the company wants to “protect our business, our brands and our people”.

Caldwell said he expects the filing will give the company “increased financial flexibility to accelerate investments and position Stoli for long-term stability
and success".

"The business will continue to trade normally as we work through this process," he said. "We will continue to work with our trade partners to drive the brands forwards and deliver our award-winning brands with no disruptions."

The restructuring process is expected to conclude in the first half of 2025, Caldwell said.

"We are positive that our actions will create the necessary breathing space to reorganize the business and establish a more appropriate financing structure that enables sustainable operations and future growth," he added.

Stoli Group owns a portfolio of spirits and wine brands, including vodka brand Stoli, which is distilled in Latvia.

Other brands under its umbrella include Elit vodka, Bayou vodka, Villa One tequila, and Achavel Ferrer wine.

Kentucky Owl is known for producing whiskeys at various price points, with some of its bourbons priced at more than $500 per bottle.

Headquartered in Luxembourg, Stoli Group operates production facilities in Spain, Italy, Argentina, and the US.

"Stoli Group US arm files for Chapter 11" was originally created and published by Just Drinks, a GlobalData owned brand.

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