The spirits industry struggled in 2025 with several distilleries filing for bankruptcy, and in some cases, closing down operations.
Many of the distillers blamed economic distress on the rising costs of labor and products driven by inflation and changes in consumers’ attitudes toward drinking spirits.
Unfavorable economic issues resulted in the U.S. spirits industry suffering a 2.8% decline in sales and a 3.2% drop in volume in the first half of 2025, according to NeilsenIQ, Beverage Industry reported.
Spirits companies filed for bankruptcy
Among the distilleries to file bankruptcy and go out of business was Littleton, Colo.-based 52eighty Distilling Corp., which filed for Chapter 7 bankruptcy to liquidate its assets on Oct. 14, 2025.
The company said it was hurt by rising costs and pullbacks in consumer spending.
Distiller Rogue Ales & Spirits parent, Oregon Brewing Company, closed operations on Nov. 14 and filed for Chapter 7 liquidation on Nov. 24. The company claimed debts owed to Lincoln County and the Port of Newport in Oregon drove it into financial distress.
Whiskey beverage brand Wilder Whiskey, the Kannapolis, N.C., maker of ready-to-drink Wilder Whiskey Seltzer, filed its Chapter 7 petition on Dec. 23 to liquidate its assets before it finished its fourth year in business.
Wilder Whiskey is owned by its fulfillment company, Full Circle, which is based in Florida. The company did not indicate a reason for filing for bankruptcy liquidation, but Wilder Whiskey had been seeking investors on its website.
Whiskey company Chapter 7 bankruptcies
- 52eighty Distilling Corp., Oct. 14, 2025
- Rogue Ales & Spirits/Oregon Brewing Company, Nov. 24, 2025
- Wilder Whiskey, Dec. 23, 2025
In other instances, distillers closed operations but didn’t need to file for bankruptcy.
Tacoma, Wash.-based McCallum & Sons Whisky Co., a premier boutique Scotch whisky and cognac bottle shop, revealed on its website that it is liquidating its inventory and closing permanently on April 30, 2025, and did not file for bankruptcy.
Heritage Distilling Company closes its tasting rooms and distilling operations.
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Heritage Distilling Company closes tasting rooms
And now, award-winning spirits distiller Heritage Distilling Company, which produced whiskeys, vodkas, gins, and rums, closed down its distilling operations and five tasting rooms in Oregon and Washington on New Year’s Eve 2025 as part of an out-of-court restructuring of its operations.
The Gig Harbor, Wash.-based spirits distiller first announced its plans in October 2025 to close its tasting rooms in Gig Harbor, Roslyn, and Tumwater, Wash., as well as two locations in Eugene, Ore., on Dec. 31 and shift its distillery operations to contract production.
“This was an extremely difficult decision and one we did not make lightly,” Co-Founder and CEO of IP Strategy Justin Stiefel said. “For more than 13 years, our tasting rooms have been the heart of our spirits business and the cornerstone of the community for the connections we built.”
“But changing consumer behaviors, increasing costs and recently-enacted and proposed taxes at the state level made future investments in this part of our business operations unsustainable,” the founder said.
The company, founded in 2011, also believed it was the right time to close the tasting rooms, as many of its retail leases were coming up for renewal in 2026.
“Given that many of our retail leases are coming up for renewal in 2026, we believe this is the right time to implement these changes as it is no longer prudent for the business to sign additional long-term leases on retail spaces,” Stiefel said.
Heritage Distilling Company closed locations
- Heritage Distilling Company Waterfront: Gig Harbor, Wash.
- Heritage Distilling Company Roslyn: Roslyn, Wash.
- Heritage Distilling Company Tumwater: Tumwater, Wash.
- Heritage Distilling Company Whiteaker: Eugene, Ore.
- Heritage Distilling Company 5th Street, Eugene, Ore.
In addition to increased state taxes and regulatory burdens, the company credited consumer shifts toward reduced alcohol consumption and alternative products, legislative failure to equalize taxation of lower alcohol proof ready-to-drink beverages with wine and beer, and input from investors and stakeholders seeking to streamline operations to improve profitability as reasons for closing operations.
Heritage Distilling will continue with contract production
Heritage said that it will focus on contract production partnerships, brand development, direct-to-consumer sales, wholesale development, and partnerships with Native American tribes by adding branded tasting rooms at Tribal Beverage Network locations in and near their casinos.
The spirits company currently operates Heritage Distilling Company at Angel of the Winds Casino Resort in Arlington, Wash.
Heritage plans to open tribal casino locations
Heritage Distilling Company’s website also lists a tasting room coming soon to Mazatzal Casino of the Tonto Apache Tribe in Payson, Ariz., and at a Ko-Kwel Casino Resort in Oregon.
While the restructuring will reduce annual revenues by about $3 million a year, it will also reduce annual operating expenses by about $5 million. It will eliminate $1.1 million in unabsorbed production overhead costs per year and provide a net reduction in working capital needs of over $2 million a year.
The company will also eliminate over $2 million in annual interest and other expenses and reduce liability by $19.3 million, according to an October statement.
Related: Another popular beer brand closes forever, no bankruptcy filed
