Stoli Wodka requests bankruptcy in the USA

Stoli Wodka requests bankruptcy in the USA

Stoli Group USA, the owner of the vodkamark of the same name, has filed for bankruptcy. The company is struggling with a decline in the demand for spirits, a massive cyber attack that affected the operating processes, and protracted legal disputes against Russia.

financial difficulties and insolvency proceedings

In its bankruptcy registration, the company stated that it has “financial difficulties” and that debts have between $ 50 and $ 100 million. Stoli Wodka and Kentucky Owl Bourbon will continue to be available in the shops, while the company goes through the Chapter 11 process, which refers exclusively to the US business.

brand renaming and political backgrounds

by 2022 Stoli was sold in the United States under the name of Stolichnaya, which in Russian means something like "capital". The company reduced the name according to the invasion of Russia in the Ukraine and the boycotten burned Wodkas . The founder of the Stoli Group, the billionaire Yuri Shefler, born in Russia, was banished from the country in 2000 due to his opposition to President Vladimir Putin.

production location and corporate structure

Although Stoli has long been marketed as Russian vodka, the production facilities have been in Latvia for several decades. The Stoli Group is a subsidiary of the Spi Group based in Luxembourg, which also has other spirits and wine brands.

attacks and legal disputes

"The Stoli Group has been targeted by the Russian Federation since it was founded almost 25 years ago," said Chris Caldwell, CEO of the Stoli Group. "At the beginning of this year, the company and our owner were both referred to by the Russian state as' extremist groups that work against Russia's interests."

costs of the legal disputes

the Sustainable litigation with the Russian government forced, "zig millions to spend on this long -term legal dispute with the Russian authorities ”, as can be seen from the court pad.

cyber attack and operating restrictions

Caldwell also explained that Stolis Global Operations had become a "victim of a malicious cyber attack" that forced the company to "work completely manually while the systems are rebuilt."

Sustainable effects of pandemic on demand

A decline in the demand for alcohol has stressed the balance sheets at home during the pand. had to stay and had created supplies. According to the bankruptcy documents, Stoli found a "decline and decrease in the demand for alcohol and spirits products according to Covid, especially from 2023 and until 2024".