By Arlenys Tabare
02 Dec 2024, 15:30 PM EST
The alcoholic beverage production and distribution company Stoli Group announced that it is filing for bankruptcy after currently going through “strong financial difficulties” that were generated by the drop in sales, in addition to a fight against a major cyber attack which caused the paralysis of its operations and a legal battle with the Russian government.
The company founded in 2013 that owns Stoli vodka and Kentucky Owl bourbon is going through the process to appeal to Chapter 11 bankruptcy. Although it is marketed as Russian vodka, its facilities are in Latvia.
In a statement, Stoli Group CEO Chris Caldwell noted that “The Stoli Group has been a target of the Russian Federation since it was formed almost 25 years ago. Earlier this year, both the company and our owner were named by the Russian state as ‘extremist groups working against the interests of Russia’..
According to the company, a debt is estimated between $50 to $100 million dollars. Caldwell highlighted that since the court battle began, Stoli has spent tens of millions of dollars, plus the slowdown in its operations after being “victims of a malicious cyber attack,” which has forced his company to work completely manually.
In addition to the legal battle, Stoli Group has long been struggling with an important factor, the decline in demand for alcoholic beverages, which has been detrimental to its sales and One of the main reasons was the drop in consumption of this product during the Covid-19 pandemic, something that affected the company’s profits.
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