Stoli Group (USA), LLC and Kentucky Owl, LLC, the U.S. distribution and bourbon brand affiliates of the Stoli Group spirits enterprise, filed for Chapter 11 protection on November 27, 2024 in the U.S. Bankruptcy Court for the Northern District of Texas (Case No. 24-80146-swe11, Judge Stacy W. Eggleston). The filing followed a convergence of operational shocks and market headwinds: a July 2024 Russian court ruling that designated the parent holding companies as "extremists" for directing €38 million to Ukraine support and triggered asset seizures; an August 2024 ransomware attack causing substantial operational disruptions; and a third consecutive year of declining U.S. spirits demand that compressed distributor margins and inventory turnover. The debtors' primary lender, Fifth Third Bank, had issued default notices from July through October 2024 and accelerated the approximately $78.4 million in revolving credit facilities in November. The cases operated under cash collateral orders (interim order December 3, 2024; final order January 17, 2025) with tight budget controls. An amended Chapter 11 plan and amended disclosure statement were filed June 25, 2025 but not confirmed before the case converted to Chapter 7 liquidation on January 15, 2026.
