The struggling whiskey brand files for Chapter 11 bankruptcy

The liquor industries have faced financial difficulties in the past three years, leading to bankruptcy filings.

Reasons for the industries’ economic problems included the effects of the Covid-19 pandemic, rising inflation, higher interest rates and the changing industry landscape.

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The US beer market struggled in 2023, falling 5.1% in volume, according to a 2023 annual report from the Brewers Association. Craft brewery closings rose annually, from 97 in 2016 to 418 in 2023, for a total of about 2,036 over the eight-year period.

Purveyors of whisky, vodka, gin and other spirits also underperformed, reporting flat sales in 2023, up 0.2% as volumes rose just 1.2%.

Lee Spirits Co., a Colorado-based distiller of premium gin, vodka and spirits, filed for Chapter 11 bankruptcy March 8 in the U.S. Bankruptcy Court for the District of Colorado after shutting down all operations for four days earlier, including his tasting in Colorado Springs. room, Brooklyn is on Boulder Street.

The distiller revealed on social media on March 4 that it had ceased operations because it was unable to overcome the prolonged impact of the Covid-19 pandemic and the “ever-changing industry landscape”.

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Montana Distillery, which makes a dozen varieties of vodka, gin and whiskey, filed for Chapter 11 bankruptcy in April in the U.S. Bankruptcy Court for the District of Montana, four years after moving to cut costs and survive .

The debtor faced rising costs and property taxes and decreased revenue due to the Covid-19 pandemic when it moved its distillery business from Missoula, Mont., to Stevensville, Mont., in August 2020 and opened tasting room on Christmas Eve 2020.

More bankruptcy:

• Struggling rival Home Depot files for Chapter 11 bankruptcy
• The famous Italian restaurant chain files for Chapter 11 bankruptcy
• Another struggling trucking company files for Chapter 11 bankruptcy

After four years of trying to make it in its new location, negative economic factors pushed the company into bankruptcy.

A woman pours a measure of whiskey into a glass. (Photo by Matthew Horwood/Getty Images)

Matthew Horwood/Getty Images

Mackmyra files for bankruptcy and closes

Finally, Mackmyra Svensk Whisky, a 25-year-old Swedish whiskey distillery, filed for bankruptcy on August 19 at Sweden’s Gävle District Court, handing over control of the company to a bankruptcy trustee with plans to cease operations, reported The Drinks Business. .

“It is with great sadness that we must state that, unfortunately, it is not possible to continue the company’s operations,” company president Peter Ski said in a statement.

“The company’s management and board have struggled to come to terms with the company’s profitability and cash flow,” Ski said. “Despite the fantastic work of both staff and management, it is still not possible to continue.”

Ski took over as president just over a year ago, focusing on finding a long-term solution to Mackmyra’s financial problems. He said in the statement that he did not have enough time to find a solution.

“I sincerely hope that the receiver now has a chance to do something constructive with the company’s values ​​and secure the Mackmyra brand and its 25-year history,” Ski said.

Mackmyra’s total production capacity was approximately 2.4 million bottles. It reported a 13% drop in revenue in its Q1 2024 results

The distiller recently partnered with Microsoft and Finnish technology consultancy Fourkind to create the first AI-generated blend.

The company also relaunched on August 15 in the UK with Summerton Whiskey Club as distributor.

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