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A.M. Scott Distillery Files for Chapter 11 as U.S. Spirits Slump Deepens

The company will keep operating under debtor-in-possession status during reorganization.

Overview

  • Ohio-based A.M. Scott Distillery filed a voluntary Chapter 11 petition on December 22 in the Southern District of Ohio and remains in operation under court supervision.
  • The filing lists 100–199 creditors, estimated assets up to $500,000, and liabilities between $1 million and $10 million, citing mounting losses, contract disputes, and retail closures.
  • The case adds to a yearlong run of spirits bankruptcies that includes Boston Harbor Distillery, House Spirits/Westward Whiskey, Stoli Group USA’s Kentucky Owl, and LMD Holdings.
  • Trade-driven headwinds have cut exports, with a Distilled Spirits Council report showing a 9% year-over-year decline and steep drops to Canada (-85%), the UK (-29%), and Japan (-23%).
  • Domestic demand is weakening, with Gallup reporting only 54% of U.S. adults drink alcohol, and large producers are recalibrating output, including Jim Beam’s planned 2026 production pause at its flagship Kentucky distillery.