Stoli Group and Kentucky Owl Liquidation Following Unsuccessful Chapter 11 Bankruptcy
HHS Secretary Robert F. Kennedy Jr. discusses efforts to phase out petroleum-based synthetic dyes in the nation’s food supply on ‘Jesse Watters Primetime.’
Alcohol giants Stoli Group USA LLC and Kentucky Owl LLC are liquidating their inventory in the U.S. after facing significant challenges in reorganizing their businesses under Chapter 11 bankruptcy protection. This decision comes as creditors have lost faith in the companies’ ability to successfully navigate their financial difficulties and continue operations.
According to court documents obtained by FOX Business, creditors are formally requesting a court order to terminate the companies’ Chapter 11 reorganization and transition the cases into Chapter 7 bankruptcy. This shift would entail selling off assets to settle outstanding debts.
‘LABELING ERROR’ HAS VODKA SELTZER IN ENERGY DRINK CANS, PROMPTING RECALL
Stoli Group is widely recognized in the U.S. for its Stolichnaya vodka brand, while Kentucky Owl is known for its premium bourbon label, which has garnered industry accolades. However, both brands have struggled with rising costs and a decline in consumer demand in recent years.
Customers browse in the beer, wine and spirits aisles inside a Perekrestok supermarket, operated by X5 Retail Group, in Moscow, Russia, Feb. 4, 2015. (Andrey Rudakov/Bloomberg via Getty Images)
FOX Business reached out to Stoli Group for comment regarding their current situation. The Stoli Group’s U.S. entities filed for bankruptcy protection in November 2024 in the U.S. Bankruptcy Court for the Northern District of Texas.
Stolichnaya, a well-known Soviet brand, is a vodka made of wheat and rye grain. (Getty Images)
According to court documents, the debtors indicated that they filed for Chapter 11 following a cyberattack that disabled the Stoli Group’s SAP system. This incident reportedly led to financial reporting failures, undermining Fifth Third Bank’s confidence and contributing to liquidity issues. However, the company’s ongoing struggles suggest that resolving the cyberattack did not rectify the underlying business problems.
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Kappy’s Fine Wine & Spirits in Falmouth, Mass. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The creditors have argued that the cyberattack explanation is insufficient, as the company’s financial troubles persisted long after the initial claims of resolution.
HHS Secretary Robert F. Kennedy Jr. discusses efforts to phase out petroleum-based synthetic dyes in the nation’s food supply on ‘Jesse Watters Primetime.’
Alcohol giants Stoli Group USA LLC and Kentucky Owl LLC are liquidating their inventory in the U.S. after facing significant challenges in reorganizing their businesses under Chapter 11 bankruptcy protection. This decision comes as creditors have lost faith in the companies’ ability to successfully navigate their financial difficulties and continue operations.
According to court documents obtained by FOX Business, creditors are formally requesting a court order to terminate the companies’ Chapter 11 reorganization and transition the cases into Chapter 7 bankruptcy. This shift would entail selling off assets to settle outstanding debts.
‘LABELING ERROR’ HAS VODKA SELTZER IN ENERGY DRINK CANS, PROMPTING RECALL
Stoli Group is widely recognized in the U.S. for its Stolichnaya vodka brand, while Kentucky Owl is known for its premium bourbon label, which has garnered industry accolades. However, both brands have struggled with rising costs and a decline in consumer demand in recent years.
Customers browse in the beer, wine and spirits aisles inside a Perekrestok supermarket, operated by X5 Retail Group, in Moscow, Russia, Feb. 4, 2015. (Andrey Rudakov/Bloomberg via Getty Images)
FOX Business reached out to Stoli Group for comment regarding their current situation. The Stoli Group’s U.S. entities filed for bankruptcy protection in November 2024 in the U.S. Bankruptcy Court for the Northern District of Texas.
Stolichnaya, a well-known Soviet brand, is a vodka made of wheat and rye grain. (Getty Images)
According to court documents, the debtors indicated that they filed for Chapter 11 following a cyberattack that disabled the Stoli Group’s SAP system. This incident reportedly led to financial reporting failures, undermining Fifth Third Bank’s confidence and contributing to liquidity issues. However, the company’s ongoing struggles suggest that resolving the cyberattack did not rectify the underlying business problems.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Kappy’s Fine Wine & Spirits in Falmouth, Mass. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
The creditors have argued that the cyberattack explanation is insufficient, as the company’s financial troubles persisted long after the initial claims of resolution.
