Kentucky’s whisky industry’s hard times continue as distilleries file for bankruptcy amid declining demand and uncertain global trade.
According to Newsweek, multiple Kentucky distilleries are filing for bankruptcy due to rising debt. Luca Mariano Distillery in Danville, just months after starting operations, has filed for Chapter 11 bankruptcy protection, citing financial issues.
The craft distillery founded and owned by Francesco Viola filed a bankruptcy case in Michigan court, as the headquarters of the company is in the peninsular state, reported the Courier Journal.
Viola told the Lexington Herald-Leader that the company filed for bankruptcy “to maximise the value of the assets for all stakeholders.”
“Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors," he added.
The chapter 11 bankruptcy filings revealed that LMD Holdings has 1-49 creditors, including a "likely claim of over $25,000,000" and debts between $1 million and $10 million.
Notably, LMD is not the only company that has filed for bankruptcy, as Stoli Group USA, along with its affiliate, the Kentucky Owl whisky brand, filed for liquidation last year following declining spirits demand in the country.
