Louisville, KY, January 17, 2026
Stoli Group USA and Kentucky Owl LLC have moved to convert their Chapter 11 bankruptcy to Chapter 7 liquidation, affecting only these entities while other operations remain unaffected. Significant financial challenges, geopolitical issues, and market pressures contributed to this decision. The company will ensure that Stoli’s brands remain available in the market.
Louisville, KY – Stoli Group USA and Kentucky Owl LLC File for Chapter 7 Bankruptcy
Stoli Group USA, LLC and Kentucky Owl LLC, subsidiaries of Stoli Group, have filed a motion to convert their Chapter 11 bankruptcy proceedings to Chapter 7 liquidation. A court-appointed trustee will oversee the liquidation process for these U.S. entities, while other operations remain unaffected.
Background and Financial Challenges
In November 2024, Stoli Group USA and Kentucky Owl LLC filed for Chapter 11 bankruptcy protection, aiming to restructure their debts and operations. However, after extensive negotiations, the companies were unable to reach an agreement with their senior lender on terms that would allow them to emerge from Chapter 11 as a going concern. This led to the decision to move to Chapter 7 bankruptcy, initiating the liquidation process.
Impact on Operations
The bankruptcy proceedings affect only Stoli Group USA, LLC and Kentucky Owl LLC. All other U.S. and non-U.S. operations, including Louisiana Spirits, SPI Spirits (Cyprus), and global production facilities, continue normal operations. The company believes there is sufficient inventory of Stoli brands in the U.S. market to ensure consumers will be able to continue purchasing these products for the foreseeable future.
Geopolitical and Market Pressures
Stoli Group has faced significant challenges in recent years. After publicly condemning the invasion of Ukraine and voicing support for peace, the Russian government designated Stoli as an “extremist organization.” This led to the confiscation and nationalization of Stoli’s distillery in Russia. Additionally, the company experienced a large-scale cyberattack that targeted its international operations, impairing systems vital to global distribution. These events, combined with a slowdown in the U.S. spirits market and a lack of support from the group’s finance partners, contributed to the financial difficulties leading to the bankruptcy filing.
About Stoli Group
Established in 2013, Stoli Group is responsible for the production, management, and distribution of the group’s global spirits portfolio. Known for the Stoli® Vodka brand, the company has expanded its portfolio to include brands such as Elit® Vodka, Bayou® Rum, Kentucky Owl®, Villa One™, Gator Bite™ Rum Liqueurs, Cenote® Tequila, and Se Busca® Mezcal. With a presence across more than 176 markets, Stoli Group works with a network of over 200 distributors worldwide. The company is headquartered in Luxembourg and has production facilities in Spain, Italy, Argentina, and the United States.
Frequently Asked Questions (FAQ)
What is the current status of Kentucky Owl Bourbon?
As of January 15, 2026, Kentucky Owl Bourbon is undergoing liquidation following Stoli Group USA’s motion to convert its Chapter 11 bankruptcy proceedings to Chapter 7. A court-appointed trustee will oversee the liquidation process.
How does this bankruptcy affect other Stoli Group operations?
The bankruptcy proceedings affect only Stoli Group USA, LLC and Kentucky Owl LLC. All other U.S. and non-U.S. operations, including Louisiana Spirits and SPI Spirits (Cyprus), continue normal operations.
What led to the bankruptcy of Kentucky Owl Bourbon?
The bankruptcy resulted from a combination of financial difficulties, including assets of over $100 million and liabilities between $50 million and $100 million. Contributing factors include a slowdown in the U.S. spirits market, trade disruptions, changing consumer preferences, and legal challenges with the Russian government over brand ownership and control.
What is the history of Kentucky Owl Bourbon?
Founded in 1879 by C.M. Dedman, Kentucky Owl Bourbon ceased operations in 1916 due to Prohibition. The brand was revived in 2014 by Dixon Dedman, C.M. Dedman’s great-great-grandson, and acquired by Stoli Group in 2017. Despite initial success, the brand has faced challenges in recent years, including financial difficulties and operational setbacks.
What is the future of Kentucky Owl Bourbon?
The future of Kentucky Owl Bourbon depends on the outcome of the liquidation process. A court-appointed trustee will oversee the liquidation, and stakeholders await further developments to determine the brand’s future in the Kentucky whiskey industry.
Key Features of Kentucky Owl Bourbon’s Bankruptcy and Liquidation
| Feature | Details |
|---|---|
| Bankruptcy Filing | Stoli Group USA filed for Chapter 11 bankruptcy in November 2024, listing assets over $100 million and liabilities between $50 million and $100 million. |
| Conversion to Chapter 7 | On January 15, 2026, Stoli Group USA filed a motion to convert the bankruptcy proceedings to Chapter 7, initiating the liquidation process. |
| Impact on Operations | The bankruptcy affects only Stoli Group USA, LLC and Kentucky Owl LLC; all other U.S. and non-U.S. operations continue normal operations. |
| Financial Challenges | Factors contributing to the bankruptcy include a slowdown in the U.S. spirits market, trade disruptions, changing consumer preferences, and legal challenges with the Russian government over brand ownership and control. |
| Brand History | Founded in 1879, Kentucky Owl Bourbon ceased operations in 1916 due to Prohibition, was revived in 2014, and acquired by Stoli Group in 2017. |
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