Another U.S. liquor brand files Chapter 11 bankruptcy

The United States liquor industry has faced problems on multiple fronts. First, Americans just aren't drinking as much as they used to.

"The percentage of U.S. adults who say they consume alcohol has fallen to 54%, the lowest by one percentage point in Gallup’s nearly 90-year trend. This coincides with a growing belief among Americans that moderate alcohol consumption is bad for one’s health, now the majority view for the first time," Gallup reported.

Gallup has tracked Americans’ drinking behavior since 1939 and their views of the health implications of moderate drinking since 2001.

"From 1997 to 2023, at least 60% of Americans reported drinking alcohol. The figure fell to 62% in 2023 and to 58% in 2024, before reaching 54% today. Prior to the most recent poll, the rate has been under 60% fewer than 10 times, including 58% in the initial 1939 poll and a one-time low of 55% recorded in 1958," the studies showed.

In addition, President Doland Trump's tariffs have led to a large drop in liquor exports to some countries.

"Following a banner year for U.S. distilled spirits exports in 2024, exports of American spirits fell 9% year-over-year in the second quarter, driven by ongoing trade tensions," according to a new report released by the Distilled Spirits Council of the United States (DISCUS).

DISCUS CEO Chris Swonger said U.S. spirits exports to Canada plummeted 85%, falling below $10 million in the second quarter of 2025. U.S. spirits sales in Canada also declined 68% in April 2025.

"U.S. spirits exports experienced notable declines across all key international markets. Exports to the EU — the U.S. spirits industry’s largest market — fell 12% to $290.3 million, while exports to the UK dropped 29% to $26.9 million and those to Japan decreased 23% to $21.4 million," according to the report.

Those dual problems have led to multiple bankruptcies in the U.S. liquor space, and now, A.M. Scott Distillery, which offers a collection that includes our vodkas, two gins, and three bourbons, has filed for Chapter 11 bankruptcy protection.

A.M. Scott Distillery files Chapter 11 bankruptcy

A.M. Scott Distillery has struggled in recent months as its founder has faced legal problems.

"Troy businessman Anthony Michael Scott, owner of A.M. Scott Distillery, and former owner of The Mayflower, is facing felony charges in Mercer County. Scott, 44, of Troy, was indicted on two felonies after a Mercer County grand jury handed up the decision on March 20 in the Mercer County Court of Common Pleas. A warrant was then issued for his arrest," Miami Valley Today reported.

Scott pleaded not guilty to the charges.

It is not clear from court records or the company’s filings whether the legal matters involving the founder are connected to the bankruptcy case.

Aside from its owner's legal problems, the A.M. Scott brand has built a devoted audience during its relatively short existence.

"A.M. Scott Distillery planted its roots in Troy, Ohio, in 2022. Its lineup of handcrafted spirits currently includes vodka, whiskey, and gin. A.M. Scott Distillery prides itself on being approachable, affordable, and accessible — perfect for both amateurs and veterans in the craft," the company shared on its website.

The company released its first collection in 2023.

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“The full collection is out, and we’re proud of the product,” A.M. Scott Distillery President Anthony Scott told Dayton Daily News. “It’s been great to see so many familiar faces stop in, and we’ve met many new customers, too. We’re excited about the release, and our team is committed to continually developing new products.”

Now, the company has been forced into Chapter 11 bankruptcy.

A.M. Distillery bankruptcy at a glance

• Company: A.M. Scott Distillery, LLC (doing business as Scotty’s Bottle Parlor) located in Dayton/Troy, Ohio.
• Chapter 11 (reorganization).
• Court: U.S. Bankruptcy Court, Southern District of Ohio (Dayton).
• Case Number:3:25-bk-32562.
• Date Filed:December 22, 2025.
• Filing Type:Voluntary petition: The company chose to seek protection.
• Status: Listed as debtor in possession, meaning the business typically continues to operate while restructuring.
  Source: Bankruptcy Observer
• A.M. Scott Distillery has been active as a craft spirits producer in Ohio, selling vodka, gin, bourbon, and operating associated venues like Scotty’s Bottle Parlor in Troy, reported the Dayton Daily News.
• The distillery previously shifted focus away from non-core hospitality ventures toward manufacturing and distribution, including stepping back from running The Mayflower entertainment venue, according to the Dayton Daily News.

No details have been released about the company's debt and assets or the company's creditors.

A look at all the distillery brands filing bankruptcy

"The drop in Bourbon and whiskey sales is part of a larger overall drop in spirit sales. After booming during the pandemic, the total sales of all spirits fell in 2023 for the first time in 30 years. A big part of this has been changing habits among young drinkers and concerns over alcohol's health effects," according to Tasting Table.

A large list of brands, both big and small, have filed for bankruptcy.

U.S. spirits & distillers:

• Westward Whiskey (House Spirits Distillery LLC): Filed Chapter 11 bankruptcy (April 2025) due to liquidity challenges; continued operations during reorganization, according to PacerMonitor.
• Boston Harbor Distillery: Craft spirits distiller (whiskey, rum, gin, etc.) filed for Chapter 11 bankruptcy (March 31, 2025), reported The Street.
• Devils River Distillery LLC: Texas whiskey distiller filed Chapter 11, seeking reorganization, according to The Street.
• JJ Pfister Distilling Co.: Sacramento spirits manufacturer filed for Chapter 11 after closing operations, shared The Street.
• Lee Spirits Co. Inc.: Colorado distillery filed for Chapter 11 and ceased operations (March 8, 2024), reported PacerMonitor.
• Garrard County Distilling Company (Kentucky): Ceased operations and entered bankruptcy proceedings with major debts owed; furloughed workers, reported HERE Lexington.

International/large brand filings:

• Stoli Group (USA) LLC & Kentucky Owl, LLC: U.S. arm of the Stoli brand (vodka, bourbon, rum, tequila, gin, etc.) filed for Chapter 11 bankruptcy (Nov 2024). Large portfolio and significant liabilities, reported Distillery Trail.
• 52 Eighty Distilling (Colorado): Filed for Chapter 7 bankruptcy, exiting business, according The Spirits Business.

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