Stoli Group USA Files for Bankruptcy #

Stoli Group USA, owner of the well-known vodka brand, has filed for bankruptcy, challenged by declining demand for spirits, a disruptive cyberattack, and years of legal conflict with Russia. The company’s filing disclosed financial difficulties, listing liabilities between $50 million and $100 million. Despite this, Stoli vodka and Kentucky Owl bourbon will remain available as the company undergoes the Chapter 11 process affecting only its U.S. operations.

Previously sold as Stolichnaya before 2022, the brand altered its name after boycotts following Russia’s invasion of Ukraine. Founder Yuri Shefler was exiled from Russia in 2000 due to his opposition to its president. Although marketed as Russian vodka, production has long been based in Latvia. Stoli Group is part of the Luxembourg-based SPI Group, housing various spirit and wine brands.

“The Stoli Group has been targeted by the Russian Federation since it was formed nearly 25 years ago.” Earlier in the year, both the company and its owner were labeled by Russia as “extremist groups working against Russia’s interests.” This ongoing legal conflict has compelled Stoli to allocate millions of dollars to a global court battle.

Concurrently, a malicious cyberattack has forced Stoli’s global operations to function entirely manually while systems are rebuilt. Compounding these challenges, a slowdown in alcohol demand after the pandemic has impacted the company’s performance. Sizeable declines have been noted post-Covid, particularly evident from 2023 onwards.