Kentucky Owl has gotten high marks for its whiskey in recent years — including some highly-rated collaborations with distilleries in Japan and Scotland. But if you’re a bourbon enthusiast who has savored one of their bottles lately, some concerning news has developed regarding the distillery’s future, and leading to questions as to whether Kentucky Owl has a second act in store.
Earlier this week, parent company Stoli announced that, more than a year after Kentucky Owl (and corporate sibling Stoli Group USA) had entered Chapter 11 bankruptcy, it was filing a motion to move both into Chapter 7. If you’re unsure of the difference between these two classifications, here’s a quick overview: Chapter 11 allows for the possibility of corporate reorganization; Chapter 7 bankruptcy is a precursor to liquidation.
Stoli addressed the near-term future of Kentucky Owl (and Stoli Group USA) products in the announcement. “We believe there is sufficient inventory of Stoli brands in the U.S. market to ensure consumers will be able to continue purchasing these products for the foreseeable future,” they said.
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This limited-edition whiskey takes its cue from across the pondAs Inc.‘s Leila Sheridan pointed out in an article on the distillery, this may not be the last legal manuever in this case. Sheridan reports that Kentucky Owl’s primary creditor Fifth Third Bank planned to file a motion to appoint someone to oversee Kentucky Owl’s Chapter 11 reorganization.
Once you factor in a bourbon industry experiencing high-profile troubles of its own, the situation gets more complex. There are other factors at play here as well, including Stoli’s disagreements with the Russian government — all of which makes this a perfect storm to unsettle bourbon aficionados across the nation.
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