A reduction in demand causes the company to face financial problems that it cannot solve.
On November 27, 2024, a well-known russian vodka company filed for bankruptcy in Texas, under Chapter 11 protection, arguing a sharp reduction in demand for its products. It’s about the company Stoli Group USA, a subsidiary of the international company SPI Group that produces the famous Stoli vodka.
The company is facing significant financial problems due to a reduction in the demand for liquor that grew since 2023. In addition, it also suffered a cyber attack in 2024 that brought operational problems due to data hijacking from its system. This delayed its operation. As a result, the bankruptcy process is presented as an opportunity for Stoli Group to reorganize its assets while protecting existing jobs.
Stoli and his problems with the Russian government
His complicated situation with the Russian government also played a role in the financial fallout. According to official media, Stoli Group was immersed in a prolonged and costly legal dispute with Russia for years over the rights to vodka brands that have been privatized since the 90s.
Stoli Vodka
In July 2024, authorities seized the company’s last distilleries in the country after declaring the company “extremist” for its support of Ukrainian refugees. The assets seized by the Russian state are valued at approximately $100 million.
Will Stoli products still be on sale?
Despite the difficulties faced by the company, Stoli Group USA and Kentucky Owl (its associate) plan to jointly present a reorganization plan that, according to one of its representatives, will preserve the jobs of employees and allow debtors to continue operating. .
In addition, from 2022, Stoli moved its production to Latvia and changed its name from Stolichnaya to Stoli, in response to the Russian invasion of Ukraine and will be able to continue operating from that location.
Source: Ambito
