Latest news with #LucaMariano
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
Daily Mail
6 days ago
- Business
- Daily Mail
Whiskey distilleries hit with wave of bankruptcies
Published: | A wave of American whiskey distilleries are collapsing under the weight of mounting debt, falling demand, and rising global tensions — signaling a crisis for the once-booming industry. The latest to fall the owner of the Luca Mariano Distillery in Danville, Kentucky, which filed for Chapter 11 bankruptcy last month with an estimated $25 million in debt. Sales are drying up as price-sensitive and health-conscious American consumers pull back on spirits. Campari-owned Wild Turkey saw an 8 percent decline in US sales during the first half of 2025, while Jack Daniel's dropped 6 percent year-over-year. In January, Jack Daniel's parent company Brown-Forman announced layoffs affecting 12 percent of its workforce and the closure of a major barrel-making facility in Louisville. 'Recent indicators point to a moderation in growth prospects, with declining business confidence and rising economic policy uncertainty, exacerbated by escalating trade tensions,' the company said in its report. 'The United States's newly announced tariffs, and the threat of retaliatory measures, add to the United States beverage alcohol sector is among those at risk, while the full effects remain complex and unclear,' the report stated. The US announced EU imports would be hit with a 15 percent duty, but it is not yet clear what European tariffs on American goods will be. Jack Daniel's Tennessee Whiskey also fell 6 percent year-over-year, its latest report revealed. In January its parent company Brown-Forman said it would be eliminating roughly 12 percent of its workforce and closing one of its major barrel-making plants in Louisville, Kentucky. 'This has been an extremely difficult time for distillers across the country who are dealing with increased production costs, a slowdown in spirits sales in the U.S. marketplace, and a significant disruption to spirits exports due to threat of tariffs and retaliation related to ongoing trade disputes,' the Distilled Spirits Council of the United States told Newsweek. Another major hurdle for this industry is that Canada, the US spirits second largest export market, is keeping whisky off its store shelves in protest at Trump's punitive trade policies against the nation. It's not just Kentucky whisky that is suffering as a result of a general consumer pullback from alcohol.
Daily Mail
7 days ago
- Business
- Daily Mail
Iconic American industry hit with wave of bankruptcies as companies scramble amid plunging demand
A wave of American whiskey distilleries are collapsing under the weight of mounting debt, falling demand, and rising global tensions — signaling a crisis for the once-booming industry. The latest to fall the owner of the Luca Mariano Distillery in Danville, Kentucky, which filed for Chapter 11 bankruptcy last month with an estimated $25 million in debt. Owner Francesco Viola said he hopes the business can 'emerge successfully, ideally with the support of its employees, customers, community and creditors.' Luca Mariano follows the high-profile collapse of Garrard County Distilling, a $250 million independent Kentucky distillery that was placed into receivership and shut down in April after defaulting on debt. And in late 2023, the iconic Kentucky Owl, founded in 1879, also filed for bankruptcy — citing slumping sales and a crippling cyberattack that halted operations. Sales are drying up as price-sensitive and health-conscious American consumers pull back on spirits. Campari-owned Wild Turkey saw an 8 percent decline in US sales during the first half of 2025, while Jack Daniel's dropped 6 percent year-over-year. In January, Jack Daniel's parent company Brown-Forman announced layoffs affecting 12 percent of its workforce and the closure of a major barrel-making facility in Louisville. 'Recent indicators point to a moderation in growth prospects, with declining business confidence and rising economic policy uncertainty, exacerbated by escalating trade tensions,' the company said in its report. 'The United States's newly announced tariffs, and the threat of retaliatory measures, add to the United States beverage alcohol sector is among those at risk, while the full effects remain complex and unclear,' the report stated. The US announced EU imports would be hit with a 15 percent duty, but it is not yet clear what European tariffs on American goods will be. Jack Daniel's Tennessee Whiskey also fell 6 percent year-over-year, its latest report revealed. In January its parent company Brown-Forman said it would be eliminating roughly 12 percent of its workforce and closing one of its major barrel-making plants in Louisville, Kentucky. 'This has been an extremely difficult time for distillers across the country who are dealing with increased production costs, a slowdown in spirits sales in the U.S. marketplace, and a significant disruption to spirits exports due to threat of tariffs and retaliation related to ongoing trade disputes,' the Distilled Spirits Council of the United States told Newsweek. Another major hurdle for this industry is that Canada, the US spirits second largest export market, is keeping whisky off its store shelves in protest at Trump's punitive trade policies against the nation. Well-known Kentucky whisky business Garrard County Distilling collapsed in the spring It's not just Kentucky whisky that is suffering as a result of a general consumer pullback from alcohol. In June the largest alcohol distributor in the US has announced it is pulling out of California, blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling
Yahoo
7 days ago
- 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
