The distilled spirits industry has faced economic hardship in 2025, as several distillers struggled with financial distress, closed businesses, and filed for bankruptcy.
The industry finished 2024 with a decline in spirits supplier sales that dropped 1.1% to $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025.
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The year concluded with Stoli USA, a subsidiary of vodka giant Stoli Group, filing for Chapter 11 protection on Nov. 27, 2024, after financial distress led to a default on $78 million in secured debt owed to Fifth Third Bank NA.
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Also in November, Sacramento-based spirits manufacturer JJ Pfister Distilling Co., which launched in April 2018, closed its distillery and tasting room in November 2024 with plans to market its assets for sale. The distillery, however, waited until May 2025 to file for Chapter 11 protection.
Beginning in February, tariffs imposed by the Trump administration on foreign imported spirits caused a lot of uncertainty in the spirits and wine industries, with companies not knowing what to expect going forward.
The San Antonio-based Devils River Distillery LLC, which opened for business in 2017, filed for Chapter 11 protection on May 1, 2025, to reorganize and continue operating.
The Devil's River Whiskey distiller makes five different bourbon whiskeys and a rye whiskey. The company distributes its liquor to 36 states, five countries, and cruise lines, offering premium and craft bourbons.
More distilleries file for bankruptcy
The maker of Westward Whiskey, House Spirits Distillery LLC, filed for Chapter 11 bankruptcy on April 6 to reorganize, suffering from financial distress after over-expanding just before the liquor market contracted.
Craft spirits producer Boston Harbor Distillery, which makes whiskey, rum, gin, liqueurs, and distilled beer, on March 31, 2025, filed for Chapter 11 bankruptcy protection, seeking to reorganize its business.
Tacoma, Wash.-based McCallum & Sons Whisky Co., a premier boutique Scotch whisky and cognac bottle shop, revealed on its website that it is liquidating its inventory and closing permanently on April 30, 2025.
The company did not file for bankruptcy at last check.
Image source: Shutterstock
Dented Brick files for bankruptcy protection
And now, popular distilled spirits producer Dented Brick Distillery filed for Chapter 11 bankruptcy to reorganize its business and continue as a going concern.
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The debtor's parent company, Salt Lake City Distillery LLC, filed its petition in the U.S. Bankruptcy Court for the District of Utah on July 10, listing up to $50,000 in assets and $1 million to $10 million in debts.
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The Salt Lake City-based distillery, formerly known as Mormon Tea Distillery, lists 17 different types of spirits on its website. The company sells bottles of its spirits on its website in all states, except Michigan, South Dakota, and Utah.
Dented Brick sells premium and craft vodka, gin, and rum; craft whiskey and various straight rye whiskeys, craft tequila, and its Hugh Moon Moonshine, named after the Utah pioneer distiller, who once owned the land where Dented Brick stands.
Currently, customers can order bottles of Dented Brick's Chardonnay Barrel Finished Gin, Chardonnay Barrel Finished Straight Rye Whiskey, Craft Tequila Blanco, Coconut Flavored Rum, and Glitter Pineapple Flavored Rum online.
The website says its Craft Vodka and Craft Gin are out of stock for online sales.
The company also sells its spirits at various shops in 25 states nationwide.
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