While many consider it a value brand, Stoli Vodka markets itself as the original premium brand. It’s a company that has a deep history.
That history, you should note, no longer mentions “Russia” in its origin story due to boycotts of Russian brands after the nation invaded Ukraine.
“Made from the finest wheat and distilled into the highest quality alcohol, the process starts in Latvia, at the magnificent Latvijas Balzams distillery (built by order of the Tsar in 1900) where the spirit is then filtered through charcoal and quartz sand and blended with pure artesian well water, to create vodka of unsurpassed smoothness. Latvijas Balzams has been one of the main production facilities for Stoli Vodka since 1948,” the company shared on its website.
Related: Popular brewery and distillery files Chapter 11 bankruptcy
In addition to its classic vodka, Stoli Group owns a number of other popular spirit brands including Elit Vodka, Kentucky Owl bourbon, The Wiseman, a bourbon and rye line, Bayou Rum, Cenote, Villa One, and Se Busca tequilas as well as Tulchan Gin, and various wines.
The company makes its overall approach clear.
“Our brands push further, aim higher and bring people together over little shared moments of magic. Whether it’s vodka or wine, the quality of our products is unlike anything else on the market – because we always strive for better. We care deeply and think creatively, building sophisticated brands that are revered worldwide,” it posted on its website.
The company, however, filled Chapter 11 bankruptcy in late November and remains under court protection. But that could change soon.
Stoli Group suffered from a cyberattack.
Image source: Getty Images
Stoli Group USA filed Chapter 11 bankruptcy
Stoli Group USA blamed its bankruptcy filing on a two-month-long cyberattack that impacted its U.S. operations. The Chapter 11 filing involved Stoli Group USA and its Kentucky Owl American Whiskey unit.
Under the terms of the original filing, the company planned to continue operations as normal, making all required payments. The filing showed the company as having between $50 million and $100 million in liabilities.
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In the filing with the Northern District of Texas bankruptcy court, it also showed between 299 and 1,000 creditors. It does have significant assets and reported holding between $100 and $500 million in tangible assets.
The cyberattacks, according to the company, crippled its systems and forced it to rebuild them while operating fully manually.
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Stoli Group USA hired Steve Wybo as its Chief Restructuring Officer and named Foley and Lardner as its law firm.
Stoli used to be known as Stolichnaya, but changed its name in 2022 after Russia invaded Ukraine.
Stoli bankruptcy comes to a key point
On June 16, Stoli will return to court to involve a hearing on its next steps as part of the bankruptcy.
The company’s bank, Fifth Third, has an objection to how it has been using its cash.
In the hearing, the court will hear arguments from the bank, which is demanding “adequate protection.” It has formally objected to Stoli’s “continued use of cash collateral without lender’s consent,” according to a court filing.
In absence of that consent, the bank wants the court to appoint a new Chapter 11 trustee or “convert these Chapter 11 cases to Chapter 7.”
Chris Caldwell, the company’s CEO and current trustee, wants the court to continue its original motion and give his company more time to file a Chapter 11 bankruptcy plan.
In theory, the bankruptcy court judge, Scott W. Everett, could order the company to liquidate its assets. If that happened, it’s unclear if a company would bid for all its assets or whether the company would be sold in pieces.
Stoli Group USA does not include the Stoli Group assets in the rest of the world.
Related: Popular beverage chain franchisee files for Chapter 11 bankruptcy
