Stoli Group USA, the vodka giant, has filed for bankruptcy. The company faces slowing demand, a major cyberattack, and years of legal battles with Russia.
In its filing, Stoli revealed financial struggles and debts between $50 million and $100 million. Despite this, Stoli vodka and Kentucky Owl bourbon will remain on store shelves during the Chapter 11 process, which affects only its US operations.
Until 2022, the vodka was sold as Stolichnaya, meaning “capital city” in Russian. The name changed after Russia’s invasion of Ukraine, as boycotts against Russian-branded vodkas surged. Founder Yuri Shefler, a Russian-born billionaire, has been exiled from Russia since 2000 due to his opposition to Vladimir Putin.
Though marketed as Russian vodka, Stoli’s production has been in Latvia for decades. It operates as part of the Luxembourg-based SPI Group, which owns various spirit and wine brands.
“The Stoli Group has been targeted by the Russian Federation since it was formed nearly 25 years ago,” said CEO Chris Caldwell. He added that earlier this year, both the company and its owner were labeled by Russia as “extremist groups working against Russia’s interests.”
The prolonged legal battle with Russia has cost Stoli tens of millions of dollars. The company described it as a “long-term court battle across the globe with the Russian authorities.”
Caldwell also pointed to a crippling cyberattack this year. The attack forced Stoli to operate “entirely manually while the systems are rebuilt.”
Post-pandemic trends have worsened Stoli’s challenges. The company reported a sharp decline in alcohol demand, particularly from 2023 into 2024, following a pandemic-era boom when people stocked up at home.