Latest news with #LMDHoldings
Yahoo
3 days ago
- Business
- Yahoo
Beloved Whiskey Distillery Files For Bankruptcy
One iconic Kentucky whiskey distillery appears to have fallen on hard times financially and is filing for bankruptcy protection as a result. Luca Mariano has become one of the more beloved whiskey brands in recent years, with its Luca Mariano Single Barrel Rye Whiskey even ranking as one of the best rye whiskeys of 2023, according to the San Francisco World Spirits Competition. However, like many other whiskey and bourbon brands and distilleries throughout the United States, it seems to have had some issues on the business side of things. According to a report from Newsweek, LMD Holdings, the parent company of the Danville, Kentucky-based Luca Mariano Distillery, filed for Chapter 11 bankruptcy last month in the Eastern District of Michigan, where it is registered. The bankruptcy filing, which came only weeks after the distillery's June launch, was intended to "maximize the value of the assets for all stakeholders," Luca Mariano Distillery owner Francesco Viola told the Lexington Herald-Leader, adding that the company was "poised to emerge successfully. "We filed to maximize the value of the assets for all stakeholders. Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry, and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors," Viola told the paper in a full statement. According to court filings obtained by the Lexington Herald-Leader, LMD Holdings is currently facing a significant amount of debt, including a "likely claim of over $25,000,000" owed to its largest creditor. However, some of the claims are under dispute. This is certainly not the only whiskey brand that has been burdened by an uncertain economy. We'll have to see how Luca Mariano and the rest of the whiskey and bourbon industry rebound from this in the future. Beloved Whiskey Distillery Files For Bankruptcy first appeared on Men's Journal on Aug 5, 2025
Yahoo
06-08-2025
- Business
- Yahoo
Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know
Popular Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know originally appeared on Parade. U.S. whiskey sales seemed like a sure thing, growing year after year for two decade until 2023. This is the year the Distilled Spirits Council of the United States issued a report noting that U.S. whiskey sales had dropped by .4%, which seems like small potatoes in the grand scheme of things. However by 2024, the organization reported a further drop in American whiskey sales, this time to the tune of 1.8%. Now some popular Kentucky whiskey distilleries are filing for bankruptcy, and it's alarming for a few different notably is the loss of jobs when Kentucky distilleries either close up shop or drastically reduce production. Particularly considering the Kentucky Distillers' Association estimates that the state's whiskey and bourbon industry is valued around $9 billion. Which Kentucky whiskey distilleries are filing for bankruptcy? In July 2025, the parent company of Luca Mariano Distillery, LMD Holdings, filed for Chapter 11 bankruptcy. This distillery is located in Danville, Kentucky, that has a population of less than 18,000, according to the 2020 U.S. Census. The court documents filed by LMD Holdings cite they owe a "likely claim" of over $25 million to their largest creditor. It's worth noting this distillery just launched in June Garrard County Distilling, which is independently owned so has no parent company to fall back on, has been placed in receivership. This means that a court or bank has appointed a "receiver" to take control of the company's assets and operations. Garrard County Distilling closed in April 2025. They were located in Lancaster, Kentucky, a roughly 20 minute drive from Luca Mariano. Then there's the case of Stoli Group USA, who filed for bankruptcy in November 2024. While you might typically associate the name Stoli with vodka, they own Kentucky Owl whiskey, which, according to Whisky Advocate, had big plans to open Kentucky Owl Park in the city of Bardstown. The 420-acre center was designed to include a distillery as well as warehouses, a bar, restaurant, hotel and light railroad, which would have created a lot of local jobs. Fraught with delays from the start, now the entire project is shrouded in uncertainty. What's coming next for the U.S. whiskey industry? Currently, it's hard to say. On Reddit, some feel distilleries like Garrard County didn't catch on fast enough while whiskey was on a major upswing. "I think this will happen to a lot of these brands that tried to get in at the tail end of the boom," says Redditor murrayky 1990. "It'll be interesting to see how Blue Run's big investment plays out." To give this some context, Blue Run Kentucky Straight High Rye Bourbon is a small-batch whiskey. They're headquartered in Georgetown, Kentucky, just outside of Lexington. The same Reddit user went on to say they believe established brands will be fun, but quality is important for the industry newbies to make a name for themselves and survive. "Slick marketing/branding ain't cutting it anymore," they Kentucky Whiskey Distilleries Are Filing for Bankruptcy—Here's What to Know first appeared on Parade on Aug 5, 2025 This story was originally reported by Parade on Aug 5, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
05-08-2025
- Business
- New York Post
Kentucky's $9B whiskey industry in crisis as Gen Z drinkers shun bourbon, tariffs take toll
Kentucky's legendary whiskey business is experiencing its worst crisis in decades, with major distilleries shutting down and thousands of jobs at risk as the industry struggles against declining sales, changing drinking habits among Gen Z consumers and damaging trade disputes. Three prominent Kentucky distilleries have collapsed into bankruptcy over the past eight months, marking a dramatic downturn for an industry that generates $9 billion annually for the state. LMD Holdings, which operates Luca Mariano Distillery, owes more than $25 million to creditors, while Garrard County Distilling faces nearly $26 million in debts. Advertisement Kentucky Owl, owned by international spirits company Stoli Group, has also filed for bankruptcy protection with millions in outstanding obligations. 4 Bottling lines stand idle at Kentucky distilleries as the state's $9 billion whiskey industry faces widespread shutdowns. Chance – The financial devastation extends far beyond individual companies. More than 23,000 workers across Kentucky's whiskey region depend on the industry for their livelihoods, with combined wages totaling $1.6 billion. Even established giants like Brown-Forman have eliminated hundreds of positions, while major producer Diageo has temporarily halted operations at Kentucky facilities. Advertisement The crisis stems from a dangerous combination of overproduction and rapidly shifting consumer preferences. During the bourbon boom of the 2000s, distilleries dramatically expanded production and investment, creating what industry experts now recognize as an unsustainable bubble. Kentucky currently stores over 14.3 million aging barrels of whiskey — more than two barrels for every person living in the state. This massive inventory buildup coincided with a sharp decline in demand. Advertisement American whiskey sales dropped 1.8% in 2024 to $5.2 billion, according to industry data. 4 Gen Z drinkers toast with lighter beverages, signaling a cultural turn away from high-proof spirits. Koldo_Studio – The problem has been made worse by younger drinkers, particularly those in Gen Z who are abandoning traditional high-proof bourbon in favor of ready-to-drink canned cocktails and lighter alcoholic beverages like hard seltzers. Social media platforms, especially TikTok, have accelerated this trend by promoting sweeter, lower-alcohol drinks as fashionable alternatives to whiskey. These viral trends have fundamentally changed how young adults view alcohol consumption, dealing a significant blow to bourbon's cultural appeal. Advertisement Alcohol use among young Americans has declined sharply over the past two decades, with the share of adults under 35 who drink falling from 72% in the early 2000s to 62% today. Binge drinking and underage drinking have dropped significantly, with Gen Z consuming 20% less alcohol per capita than Millennials did at the same age. Experts attribute the shift to growing health awareness, changing social norms, the rise of alcohol alternatives and economic or cultural forces shaping how younger generations view drinking. International trade disputes have created additional headaches for Kentucky producers who rely heavily on export markets. Canada, which purchases $40 million worth of Kentucky bourbon annually, imposed retaliatory tariffs earlier this year in response to President Donald Trump's levies on Canadian imports. 4 Historic distilleries across Kentucky, once booming, now struggle under the weight of overproduction and debt. Reagan – Trump's tariffs prompted Ontario retailers to remove American spirits from their shelves entirely. Michter's distillery alone lost $115,000 in cancelled Canadian orders. Advertisement The European Union presents an even larger threat, with plans to implement a 50% tariff on American whiskey that have been delayed several times in order to allow for trade negotiations to run their course. In 2020, the bloc imposed a 35% tariff on American whiskey, causing exports to drop precipitously. The financial pressure has exposed how many distilleries expanded too aggressively during the boom years, taking on risky debt loads that became impossible to manage as market conditions deteriorated. Advertisement Both startup operations and long-established companies have found themselves vulnerable to the sudden downturn. Industry leaders are now calling for major changes to help distilleries survive what they describe as a perfect storm of challenges. Proposed solutions include greater emphasis on sustainable production methods, expanded bourbon tourism experiences and development of ready-to-drink products that appeal to younger consumers. The crisis extends beyond distillery walls, threatening grain farmers who supply raw materials, tourism businesses that depend on bourbon trail visitors, and entire communities built around whiskey production. Advertisement 4 Aging barrels sit untouched, highlighting the deep inventory glut distilleries can't move fast enough. Jason Busa – Without significant changes in consumer behavior or resolution of trade disputes, Kentucky's signature industry faces a period of painful shrinkage. Industry analysts warn that conditions could deteriorate further if drinking trends continue moving away from traditional spirits and if international trade conflicts escalate. The state's bourbon heritage, built over centuries, now confronts an uncertain future that will require dramatic adaptation to survive.
Time of India
05-08-2025
- Business
- Time of India
Why Kentucky's $9 billion whiskey industry is spiralling into bankruptcy?
The land of bourbon is facing a brutal hangover. Once a symbol of American pride and Kentucky's economic backbone, the whiskey business is stumbling under the weight of a sluggish market, shifting consumer preferences, and mounting debt. LMD Holdings, parent company of Luca Mariano Distillery, is the latest to file for Chapter 11 bankruptcy. Kentucky's bourbon boom hits a wall LMD Holdings, registered in Michigan but operating in Danville, Kentucky, is reportedly staring down a "likely claim of over $25 million" from its largest creditor. Some debts are disputed, but the financial weight is undeniable. Founder Francesco Viola said the filing was a move to "maximise asset value" and believes the company can rebound with enough community and stakeholder support. The Luca Mariano bombshell is not a one-off. Garrard County Distilling, a $250 million facility, went into receivership and shut down just months after launching in early 2024. And the Kentucky Owl brand under Stoli Group USA filed for bankruptcy in late 2023, citing weak U.S. spirits demand and a devastating cyberattack that wrecked operations. Even the titans are wobbling Not even bourbon giants are safe. Campari Group, the parent company of Wild Turkey and Russell's Reserve, reported an 8.1% drop in year-over-year sales. The blame? A "soft trend" in the U.S. market, particularly for flagship Wild Turkey. Add in job cuts at Jack Daniel's parent company and it is clear the whole industry is in flux. Tariffs, TikTok, and taste shifts Experts point to deeper issues: global tariffs hurting exports, inflation-strained wallets, and Gen Z drinkers pivoting to low-ABV options like hard seltzers. Suddenly, aged bourbon in fancy bottles is less appealing than a casual canned cocktail. Whether Kentucky's bourbon empire can sober up and reinvent itself remains to be seen. Viola remains hopeful, calling his business model "successful" despite the storm. But with more distilleries falling by the week, the industry may need more than just faith, it might need a full-blown reinvention.
Hindustan Times
05-08-2025
- Business
- Hindustan Times
Kentucky whiskey bankruptcies: Which distilleries are broke, and why
Kentucky whiskey distilleries are finding operations are nowhere as smooth as the drinks they produce. Amid a gamut of problems, several distilleries have filed for bankruptcy. This January, Jack Daniel's parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go. Image for representation.(Unsplash) As per the Kentucky Distillers' Association, the state's bourbon and whiskey industry is estimated to be around $9 billion. This comes amid an overall tough time for the American spirits and wine industry, which is seeing job cuts in an effort to remain profitable as the trading environment becomes more and more uncertain. This January, Jack Daniel's parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go, and that they were shutting down a barrel-making plant in Louisville, Kentucky. So, which Kentucky distilleries have filed for bankruptcy? Kentucky distilleries that filed for bankruptcy LMD Holdings, the parent company of Luca Mariano Distillery, which is based out of Danville, filed for Chapter 11 bankruptcy. Court filings, accessed by Newsweek, show LMD Holdings has significant debt, including a "likely claim of over $25,000,000" which it owes to its largest creditor. Meanwhile, the Lexington Herald-Leader reported that some claims are under dispute. The filing came just weeks after it launched in June, with owner Francesco Viola telling the publication that the move meant to 'maximize the value of the assets for all stakeholders' and that the company was 'poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.' This is not the only such case. Garrard County Distilling, a $250 million independent distillery, which started production in early 2024, was closed in April to settle unpaid debts. Also Read | Will tariff cuts give bourbon whiskey the boost it needs? Stoli Group USA filed for bankruptcy late in 2024, along with affiliate, the Kentucky Owl whiskey. Recently, the sale of Kentucky bourbon Wild Turkey has seen a slump as well. Campari Group, which owns the brand and its Lawrenceburg and Danville distilleries, reported in its half-year results that sales of Wild Turkey and Russell's Reserve fell 8.1 percent year-on-year 'due to a soft trend for Wild Turkey in its core United States market.' Why are so many distilleries filing for bankruptcy? Some of the challenges Kentucky distilleries are facing include cost-pressed consumers, shifting preference of young drinkers away from whiskey, and the potential impact of tariffs on sales in key export markets. Notably, these factors are also impacting other distilleries across the US. Stoli, meanwhile, filed for bankruptcy on the back of a sustained slowdown in spirits demand in the US, and a cyberattack that took down most of its operations, CNN reported.
