Stoli Group, Kentucky Owl liquidating after Chapter 11 bankruptcy fails

Alcohol giants Stoli Group USA LLC and Kentucky Owl LLC are liquidating their US shares after struggling to reorganize their companies beneath Chapter 11 chapter safety.

Their collectors not imagine the businesses can efficiently get their funds so as and proceed working beneath a Chapter 11 chapter, which is designed to reorganize a enterprise and hold it operating, based on court docket paperwork obtained by FOX Enterprise.

In flip, the collectors are formally requesting a court docket order to finish the businesses’ Chapter 11 reorganization and as an alternative transfer issues into Chapter 7, that means the corporate would promote its property to repay its money owed.

‘LABELING ERROR’ HAS VODKA SELTZER IN ENERGY DRINK CANS, REQUESTING REVOCATION

Stoli Group is greatest recognized within the US for the vodka model Stolichnaya. Kentucky Owl is a premium bourbon label that has obtained excessive reward within the business, however has struggled with rising prices and declining demand in recent times.

Clients browse the beer, wine and spirits aisles at a Perekrestok grocery store, operated by X5 Retail Group, in Moscow, Russia, February 4, 2015. (Andrey Rudakov/Bloomberg by way of Getty Photographs)

FOX Enterprise contacted Stoli Group for remark.

Stoli Group’s U.S. entities filed for chapter safety in November 2024 within the U.S. Chapter Court docket for the Northern District of Texas.

Stolichnaya, a widely known Soviet model, is a vodka comprised of wheat and rye grains. (Getty Photographs)

See also  Trump doubles down on Colombia crackdown, threatens to cut all funding

In keeping with the paperwork, the debtors instructed the court docket they filed for Chapter 11 after a cyberattack disabled Stoli Group’s SAP system, which they mentioned brought about monetary reporting errors, undermined Fifth Third Financial institution’s confidence and contributed to liquidity issues. Nonetheless, the corporate by no means solved that drawback.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Kappy’s High quality Wine & Spirits in Falmouth, MA. (Lindsey Nicholson/UCG/Common Photographs Group by way of Getty Photographs)

The collectors argued that the cyberattack clarification didn’t arise as a result of the corporate’s issues continued lengthy after it mentioned the system could be mounted.