The Stoli Group USA, known for producing Stoli vodka and other alcoholic beverages, has officially filed for Chapter 11 bankruptcy protection in the U.S. Federal Bankruptcy Court, located in the Northern District of Texas.

In its filed declaration, the company pointed out that a downturn in spirit sales for 2023 and 2024, coupled with rising prices, played a significant role in its financial struggles.

According to the voluntary petition, Stoli Group USA reported assets estimated between $100 million and $500 million, alongside liabilities ranging from $50 million to $100 million.

In collaboration with Kentucky Oak, a bourbon distributor, Stoli Group USA plans to present a joint reorganization strategy focused on preserving jobs for employees while ensuring operations continue.

YSL News attempted to contact Stoli Group USA for additional information on Monday, but did not receive an immediate reply.

Bankruptcy linked to ongoing conflict with Russia

The American firm revealed that its parent company experienced a significant data breach and ransomware incident in August, disrupting operations across all Stoli Group companies.

Stoli Group USA explained that systems affected by the cyber attack are anticipated to be fully functional no sooner than the first quarter of 2025.

Additionally, the company noted that a Russian court labeled its two main holding corporations as “extremists” in July due to their support for Ukrainian refugees, resulting in the confiscation of Stoli Group’s remaining assets in Russia by the government.

The document highlights that this ruling is part of a prolonged conflict between the Russian state and the spirit manufacturer.

Company founder Yuri Shefler left Russia in 2002 and was later accused of politically charged crimes in the U.K. and Switzerland during the 2010s, claims the declaration states were unfounded.

Since 2000, the firm has been embroiled in legal battles with the Russian government over the trademarks for the Stolichnaya and Moskovskaya vodka brands, involving over 23 different jurisdictions.

As a response to Russia’s invasion of Ukraine, the vodka brand rebranded from Stolichnaya to Stoli in 2022, with the production now based in Latvia since 2000.