See what's being clicked on FoxBusiness.com.
Stoli Group USA filed for Chapter 11 bankruptcy protection in court last week.
Stoli Group USA, a division within Stoli Group and owned by global beverage company SPI Group, said in a Nov. 27 bankruptcy filing in the U.S. Bankruptcy Court for the Northern District of Texas that the action was “appropriate and It is in the best interest of the company. ”
According to Pacer Monitor, the team's affiliate, the Kentucky Owls, also filed for bankruptcy on the same day.
Stoli Group USA “currently faces significant balance sheet and liquidity challenges due to a variety of factors,” Global CEO Chris Caldwell said in a bankruptcy filing. (/ensemble)
Stoli Group USA “currently faces significant balance sheet and liquidity challenges due to a variety of factors,” Global CEO Chris Caldwell said in a bankruptcy filing.
CLICK HERE TO GET FOX BUSINESS ON THE GO
He said a decline in demand for spirits and other types of alcohol after the coronavirus pandemic, “particularly starting in 2023,” continued into this year, and “rising costs and inflation” contributed to the decision to file for bankruptcy protection. He said it had an impact.
Caldwell's filing said the company's financials were further weighed down by the fall's fall ransomware attack and disagreements with lenders.
He said he expected systems disrupted by the cyberattack to be fully back online “sometime after the first quarter of 2025.”
In Caldwell's bankruptcy filing, the CEO also noted that the entire Stoli Group has been engaged in a lengthy and expensive legal dispute with Russia over the company's Stoli vodka for years.
Stoli Group USA estimates its assets at between $100 million and $500 million, according to the voluntary petition. Estimated debts were between $50 million and $100 million.
FOX Business has reached out to Stoli Group for comment on the Chapter 11 petition.
Click here to read more on FOX Business
Caldwell said that entering into bankruptcy is a “Chapter 11 planning process that gives debtors breathing room and respite, allowing them to restructure their balance sheets and emerge from bankruptcy as a leaner and stronger organization.” “We will provide a path to.” He has been in charge since last summer.
Stoli Group USA and Kentucky Owl plan to file a “joint reorganization plan” in the coming months that Caldwell said will “keep employees employed and allow the debtor to continue as a going concern.” I'm aiming for it.
In late July, the U.S. Administrative Office of Courts reported that more than 22,000 U.S. companies filed for some form of bankruptcy in the 12 months ending June 30, 2024. (/ensemble)
During bankruptcy, consumers will continue to be able to purchase Stoli Group USA and Kentucky Owl alcohol products. CNN reported.
Stoli changes its vodka brand in response to Russia's invasion of Ukraine
Stoli Group's Stoli vodka has been around since the late 1930s, according to the company's website. Manufactured in Latvia, the name was changed from Stolichnaya to Stoli in 2022 following Russia's invasion of Ukraine.
In late July, the U.S. Administrative Office of Courts reported that more than 22,000 U.S. companies filed for some form of bankruptcy in the 12 months ending June 30, 2024.
