A decline in spirits sales in 2025 impacted distilleries’ revenue, forcing vodka and bourbon companies, in certain cases, to file for bankruptcy protection.
Distilleries suffered from spirits supplier sales declining by 2.2% to $36.4 billion in 2025, according to the Distilled Spirits Council of the United States.
Spirits company executives, however, are confident that the industry will persevere despite the economic decline.
“While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest,” said Chris Swonger, CEO of the Distilled Spirits Council.
Shutterstock
Legends Distillery owner files bankruptcy
Award-winning vodka and bourbon distillery owner Spirits of the USA LLC, which produces Legends brand spirits, filed for Chapter 11 bankruptcy to reorganize, according to Inforuptcy.
The Cumming, Ga., spirits distiller filed its Subchapter V petition on May 15 in the U.S Bankruptcy Court for the Northern District of Georgia, listing $500,000 to $1 million in assets and $1 million to $10 million in liabilities, according to court papers.
Spirits of the USA did not specifically indicate in its petition why it filed for bankruptcy.
The debtor’s largest unsecured creditors include Avron Properties, owed $127,000 in rent; Chase Credit Cards, owed over $95,000; BPS Glass, owed $95,000; Atlanta Beverage Company, owed over $54,000; Forsyths County Property Tax, owed $23,000; and Federal Excise Tax, owed $23,000.
Spirits of the USA opened its 20,000 square-foot distillery in 2020, along with a 5,000 square-foot tasting room. Legends sold its products in Georgia stores, online, and in its tasting room, according to North Georgia Living.
Legends website not operating
Spirits of the USA and its Legends brand do not currently have a working website. It is unclear whether the distillery and tasting room are still operating, as TheStreet’s calls during the company’s hours of operation listed on Explore Georgia were unanswered.
Online Retailer Beverage World of Cumming lists six Legends spirits for sale on its website, including Legends 80 Vodka, Legends 87 Bourbon, Legends 100 Double Barrel Bourbon, Legends Single Barrel Bourbon, Legends Highway 19 Gin, and Legends Rattlesnake Tequila.
Spirits of the USA wins awards
Spirits of the USA’s Legends brands have won several medals in the International Wine & Spirit Competition Ltd., based in London.
The company’s Legends Vodka won a gold medal from IWSC in 2024 with 95 points, and its Legends Single Barrel Bourbon won a gold medal from IWSC in 2023, also with 95 points, according to the competition’s website.
Legends brands have also won several silver and bronze medals at the IWSC competition.
The Alton Distillery files bankruptcy
Another award-winning vodka and whiskey distillery owner, Bethel, N.Y.-based The Alton Distillery’s parent, SVG 26 LLC, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of New York in Brooklyn on April 15, seeking to restructure its debt obligations and continue its operations, according to Inforuptcy.
SVG 26 filed its first petition in the U.S. Bankruptcy Court for the Eastern District of New York on Sept. 25, 2025, listing $1 million to $10 million in assets and liabilities in its petition, but the court filed a notice of deficient Chapter 11 filing on the petition date and scheduled a hearing for failure to be represented by counsel, PacerMonitor reported.
Judge Elizabeth S. Stong signed an order on Feb. 2 dismissing the Chapter 11 case, according to court papers.
The debtor’s reconsideration request was denied in April 2026, according to court papers.
Related: Major pet supplies store franchisee files Chapter 11 bankruptcy
