The U.S. whiskey industry, long regarded as a recession-proof category, is suddenly in turmoil.
Over the past year, a growing number of distillers have filed for bankruptcy or closed operations — highlighting mounting challenges for both legacy craft makers and newer ready-to-drink brands.
From Boston Harbor Distillery to Portland's House Spirits , the industry is navigating a financial landscape in which even the most established players are struggling to survive.
Among the most recent companies to join the list are whiskey distiller Rogue Ales & Spirits parent company Oregon Brewing , which filed in November, and Wilder Whiskey , which filed in late December.
Both companies filed for Chapter 7 bankruptcy which, unlike Chapter 11 bankruptcy, is not a reorganization process but a liquidation process.
Industry-wide strain
In 2025 alone, at least five whiskey brands filed for bankruptcy.
Among them are Boston Harbor Distillery, Westward Whiskey parent House Spirits Distillery, McCallum & Sons Whiskey Co., Devil's River Distillery and The Alton Distillery parent SVG 26 LLC.
Boston Harbor Distillery, LLC, founded in 2012 and best-known for its whiskey, rum and gin portfolio, filed for Chapter 11 bankruptcy on March 31, 2025, seeking to reorganize rather than liquidate entirely.
Portland's House Spirits Distillery LLC, the parent company behind Westward Whiskey, followed suit on April 6, 2025, filing under Chapter 11 in Delaware.
Meanwhile, San Antonio's Devil's River Distillery LLC filed for Chapter 11 bankruptcy in May 2025 to restructure debt while keeping its bourbon and rye portfolio on shelves.
Even SVG 26 LLC, the parent of The Alton Distillery, joined the list in September 2025, filing Chapter 11 in the Eastern District of New York with assets and liabilities in the low millions.
But not all closures are traditional distilleries.
Oregon Brewing Company, parent of Rogue Ales & Spirits, ceased operations on Nov. 14, 2025, and filed for Chapter 7 liquidation 10 days later.
The most recent filing comes from Wilder Whiskey, Inc., a North Carolina-based RTD whiskey brand.
The company filed for Chapter 7 bankruptcy liquidation on Dec. 23, 2025, with roughly $100,000 in assets and liabilities.
Legacy brands feeling the pressure
Even Jim Beam, one of the nation's most well-known whiskey brands, has had to pivot its business model as industry pressures grow.
In December 2025, the brand announced it would cease whiskey production at its main distillery in Clermont, Kentucky, for all of 2026.
In an official statement obtained by AP News , Jim Beam's parent company Suntory Global Spirits Inc. cited slowing demand for bourbon, a significant increase in aged inventory and ongoing trade pressures as the cause for pausing production at the Clermont campus beginning Jan. 1.
This decision came amid broader shifts in the bourbon industry.
According to the Distilled Spirits Council of the United States, in the second quarter of 2025, all exports of American spirits dropped 9% compared to the same time last year.
The largest decline came from U.S. exports to Canada — falling 85% from April to June.
"Canada is the only trading partner to retaliate against U.S. spirits. Exports to Canada plunged by 85%, dropping below $10 million in the second quarter of 2025," the Council wrote in its Q2 report.
"... Exports of several spirits categories posted double-digit declines, including Brandy (-12%), American Whiskey (-13%), Vodka (-14%), and Cordials (-15%), while exports of Rum declined 6%."
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