Beloved Whiskey Distillery Files For Bankruptcy

One iconic Kentucky whiskey distillery appears to have fallen on hard times financially and is filing for bankruptcy protection as a result.

Luca Mariano has become one of the more beloved whiskey brands in recent years, with its Luca Mariano Single Barrel Rye Whiskey even ranking as one of the best rye whiskeys of 2023, according to the San Francisco World Spirits Competition.

However, like many other whiskey and bourbon brands and distilleries throughout the United States, it seems to have had some issues on the business side of things.

According to a report from Newsweek, LMD Holdings, the parent company of the Danville, Kentucky-based Luca Mariano Distillery, filed for Chapter 11 bankruptcy last month in the Eastern District of Michigan, where it is registered.

The bankruptcy filing, which came only weeks after the distillery's June launch, was intended to "maximize the value of the assets for all stakeholders," Luca Mariano Distillery owner Francesco Viola told the Lexington Herald-Leader, adding that the company was "poised to emerge successfully.

"We filed to maximize the value of the assets for all stakeholders. Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry, and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors," Viola told the paper in a full statement.

According to court filings obtained by the Lexington Herald-Leader, LMD Holdings is currently facing a significant amount of debt, including a "likely claim of over $25,000,000" owed to its largest creditor. However, some of the claims are under dispute.

This is certainly not the only whiskey brand that has been burdened by an uncertain economy. We'll have to see how Luca Mariano and the rest of the whiskey and bourbon industry rebound from this in the future.