The spirit company, known widely for its vodka, today announced it has filed for bankruptcy in the United States Bankruptcy Court for the Northern District of Texas.
Stoli Group’s bankruptcy case has been classified as a Chapter 11 proceeding. This designation allows the company to reorganize its assets and liabilities in order to restructure its debts and continue operating. The restructuring process is expected to be completed in the first half of 2025.
According to court filings, the company reported assets exceeding US$100 million and liabilities ranging from US$50 million to US$100 million.
The Stoli Group, despite being a Latvian company, has recently attempted to distance itself from Putin’s regime. Since Russia’s invasion of Ukraine, the company officially changed its name to Stoli from Stolichnaya. “The Stoli Group has been targeted by the Russian Federation since it was formed nearly 25 years ago,” said Stoli Group CEO Chris Caldwell in a statement. “Earlier this year the company and our owner were both named by the Russian state as ‘extremist groups working against Russia’s interests.’”
Caldwell stated to investors: “In order to protect our business, our brands and our people, we have made the proactive decision to file for voluntary chapter 11 bankruptcy protection while we restructure the company for future success.”
“The business will continue to trade normally as we work through this process. All of our amazing brands will continue to be available to trade and consumers, and we will continue to work with our trade partners to drive the brands forwards and deliver our award-winning brands with no disruptions,” Caldwell concluded.
By CEO NA Editorial Staff
