Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here’s What to Know originally appeared on Parade.
U.S. whiskey sales seemed like a sure thing, growing year after year for two decade until 2023. This is the year the Distilled Spirits Council of the United States issued a report noting that U.S. whiskey sales had dropped by .4%, which seems like small potatoes in the grand scheme of things. However by 2024, the organization reported a further drop in American whiskey sales, this time to the tune of 1.8%.
Now some popular Kentucky whiskey distilleries are filing for bankruptcy, and it’s alarming for a few different reasons.
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Most notably is the loss of jobs when Kentucky distilleries either close up shop or drastically reduce production. Particularly considering the Kentucky Distillers’ Association estimates that the state’s whiskey and bourbon industry is valued around $9 billion.
Which Kentucky whiskey distilleries are filing for bankruptcy?
In July 2025, the parent company of Luca Mariano Distillery, LMD Holdings, filed for Chapter 11 bankruptcy. This distillery is located in Danville, Kentucky, that has a population of less than 18,000, according to the 2020 U.S. Census.
The court documents filed by LMD Holdings cite they owe a “likely claim” of over $25 million to their largest creditor.
It’s worth noting this distillery just launched in June 2025.
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Meanwhile Garrard County Distilling, which is independently owned so has no parent company to fall back on, has been placed in receivership. This means that a court or bank has appointed a “receiver” to take control of the company’s assets and operations. Garrard County Distilling closed in April 2025. They were located in Lancaster, Kentucky, a roughly 20 minute drive from Luca Mariano.
Then there’s the case of Stoli Group USA, who filed for bankruptcy in November 2024. While you might typically associate the name Stoli with vodka, they own Kentucky Owl whiskey, which, according to Whisky Advocate, had big plans to open Kentucky Owl Park in the city of Bardstown. The 420-acre center was designed to include a distillery as well as warehouses, a bar, restaurant, hotel and light railroad, which would have created a lot of local jobs. Fraught with delays from the start, now the entire project is shrouded in uncertainty.
What’s coming next for the U.S. whiskey industry?
Currently, it’s hard to say.
On Reddit, some feel distilleries like Garrard County didn’t catch on fast enough while whiskey was on a major upswing.
“I think this will happen to a lot of these brands that tried to get in at the tail end of the boom,” says Redditor murrayky 1990. “It’ll be interesting to see how Blue Run’s big investment plays out.”
To give this some context, Blue Run Kentucky Straight High Rye Bourbon is a small-batch whiskey. They’re headquartered in Georgetown, Kentucky, just outside of Lexington.
The same Reddit user went on to say they believe established brands will be fun, but quality is important for the industry newbies to make a name for themselves and survive.
“Slick marketing/branding ain’t cutting it anymore,” they wrote.
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Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here’s What to Know first appeared on Parade on Aug 5, 2025
This story was originally reported by Parade on Aug 5, 2025, where it first appeared.
