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LMD Holdings Bankruptcy Highlights Deepening Crisis in Kentucky Whiskey Sector

Distilleries are seeking stakeholder support through Chapter 11 debt restructurings to cope with softer demand, rising interest rates, export tariffs.

Bottles of whiskey sit on a shelf at whiskey store, March, 15, 2025.
Brown-Forman plans to outsource barrel production, aiming to save $70-$80 million annually amid a struggling bourbon market. (AP Photo/Toby Talbot, File)
Image
This January, Jack Daniel's parent company, Brown-Forman, announced that 12 per cent of its workforce was being let go. Image for representation.

Overview

  • LMD Holdings, owner of Luca Mariano Distillery, filed for Chapter 11 in the Eastern District of Michigan last month with court filings showing over $25 million in likely creditor claims.
  • Garrard County Distilling entered receivership and closed in April after failing to settle debts, following Stoli Group USA’s year-end bankruptcy tied to a cyberattack and a sustained slowdown in spirits demand.
  • Campari Group’s half-year results show an 8.1 percent year-over-year decline in Wild Turkey and Russell’s Reserve sales due to softer U.S. market trends.
  • Brown-Forman eliminated about 12 percent of its workforce and closed its Louisville barrel-making plant in January to boost profitability.
  • The state’s bourbon and whiskey sector is valued at about $9 billion by the Kentucky Distillers’ Association and underpins tourism, exports and thousands of jobs.