Two U.S. subsidiaries of vodka producer Stoli Group have filed for Chapter 11 bankruptcy protection, with a devastating ransomware attack playing a key role in their financial collapse.
Stoli Group USA and Kentucky Owl, facing $84 million in debt, filed for bankruptcy in Texas court on November 29. CEO Chris Caldwell cited an August 2024 cyberattack that severely disrupted the company's operations as a major factor in the decision.
The ransomware attack disabled Stoli Group's enterprise resource planning system, forcing most internal processes, including accounting functions, into manual mode. The disruption prevented the company from providing required financial data to lenders, who subsequently accused the companies of defaulting on their debt.
According to court documents, the systems are not expected to be fully restored until the first quarter of 2025. No ransomware group has claimed responsibility for the attack, and the company has not disclosed whether a ransom was paid.
The bankruptcy filing reveals multiple challenges beyond the cyberattack. The company has been embroiled in a long-running dispute with the Russian government since March 2000, when President Vladimir Putin attempted to reinstate state ownership of the brand. The conflict forced founder Yuri Shefler to flee Russia due to what Caldwell described as "fabricated charges."
In July, Russian authorities labeled Stoli Group and Shefler as "extremists" for supporting Ukrainian refugees and seized their last two Russian distilleries, valued at approximately $100 million.
The company, which rebranded from Stolichnaya in March 2022, also cited post-pandemic declining alcohol demand and inflation as contributing factors to their financial troubles.
This bankruptcy filing adds to a growing list of businesses severely impacted by ransomware attacks in recent years. Other notable cases include Clorox's production delays and Brunswick Corporation's estimated $85 million in losses from similar cyber incidents.