Stoli Group USA, maker of the budget vodka of the same name, has filed for Chapter 11 bankruptcy in the U.S. and is looking to realign its finances after a series of struggles.The company said it is “experiencing financial difficulties” in its filing and has liabilities ranging between $50 million and $100 million. The company’s products will remain on store shelves through the process and the bankruptcy filing only impacts the company’s U.S. business.Stoli has faced a series of challenges in the recent past. Overall, the spirits business has been suffering as a growing number of Americans, especially younger Americans, who often bought Stoil vodka, have turned away from spirits and alcohol in general—and the latest data from the Wine and Spirits Wholesalers of America (WSWA) indicates that trend is likely continue. (Spirit sales were down nearly 4% year over year in the 12 months through August 2024.)A former marketing hook has come back to haunt the brand as well. Until 2022, Stoli was sold as Stolichnaya in the U.S. and it was implied to be a Russian product. The invasion of Ukraine by Russia, however, led to boycotts and the company had to re-educate customers that Stoli was actually made in Latvia—and its Russian-born founder had been exiled from that country in 2000. The company said it has been involved in a long-running legal battle with the Russian government, which also impacted its finances.On top of that, Stoli Group says it was the victim of a significant cyberattack that forced it to rebuild its systems and work manually as it attempted to do so.Stoli Group also owns Kentucky Owl Bourbon, Villa One Tequila, Achaval Ferrer wine and Bayou rum.How many degrees of separation are you from the globe's most powerful business leaders? Explore who made our brand-new list of the 100 Most Powerful People in Business. Plus, learn about the metrics we used to make it.
