Stoli Group USA Files for Bankruptcy Amid Financial Struggles and Cyberattack

Stoli Group USA, the owner of the iconic Stoli vodka brand, has filed for bankruptcy following financial difficulties, a cyberattack, and ongoing legal disputes with Russia. The company, which has liabilities between $50 million and $100 million, acknowledged its financial challenges in a recent Chapter 11 filing. Despite the bankruptcy, popular brands like Stoli vodka and Kentucky Owl bourbon will remain available in stores.

The company's troubles stem from a variety of factors, including a drop in alcohol demand post-Covid and legal battles against the Russian government. These conflicts have forced Stoli Group to spend millions in legal fees, with CEO Chris Caldwell emphasizing that the company and its founder Yuri Shefler have been targeted by the Russian Federation.

“The Stoli Group has been targeted by the Russian Federation since it was formed nearly 25 years ago. Earlier this year the company and our owner were both named by the Russian state as ‘extremist groups working against Russia’s interests." he stated.

Additionally, a cyberattack disrupted Stoli's global operations, forcing a shift to manual processes. Stoli's troubles began even before the recent bankruptcy filing. In 2022, the company changed its name from Stolichnaya to Stoli, distancing itself from its Russian roots amid the war in Ukraine and a boycott of Russian-branded vodkas. The brand’s manufacturing operations, however, have been based in Latvia for years.

Stoli Group USA is the American division of the Stoli Group, known for producing the famous Stoli vodka and other premium spirits like Kentucky Owl bourbon. Originally known as Stolichnaya, the brand rebranded in 2022 in response to the geopolitical tensions following Russia's invasion of Ukraine. The company was founded by Russian businessman Yuri Shefler, who was exiled from Russia in 2000 due to his opposition to President Vladimir Putin. Stoli Group operates as a subsidiary of SPI Group, based in Luxembourg, and manufactures its products in Latvia.

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