Award-winning The Alton Distillery files Chapter 11 bankruptcy
The distilled spirits industry faced a challenging year in 2025, as spirits supplier sales declined by 2.2% to $36.4 billion, according to the Distilled Spirits Council of the United States.
The decline in sales has led to distillery closings and bankruptcy filings in certain cases.
Industry leaders, however, put on a brave face, despite a drop in sales and consumer consumption.
Spirits sales decline 2.2%
"While total U.S. spirits sales edged down 2.2% in 2025, the spirits industry remains resilient, driven by innovative products that continue to spark consumer interest," said Chris Swonger, CEO of the Distilled Spirits Council.
"Against a challenging backdrop of weakening consumer confidence and persistent economic pressures, American adults continue to choose distilled spirits, with ready-to-drink cocktails standing out as a clear favorite," Swonger said.
The Alton Distillery files for bankruptcy
The parent company of popular whiskey and vodka distiller The Alton Distillery has filed for Chapter 11 bankruptcy protection a second time after its first filing in September 2025 was dismissed, and a reconsideration request was denied in April 2026, according to court papers.
The Alton Distillery's parent, SVG 26 LLC, filed its latest petition in the U.S. Bankruptcy Court for the Eastern District of New York in Brooklyn on April 15, seeking to restructure its debt obligations and continue its operations, according to Inforuptcy.
SVG 26, the owner of the award-winning Bethel, N.Y.-based whiskey and vodka company, filed its first petition in the U.S. Bankruptcy Court for the Eastern District of New York on Sept. 25, 2025, listing $1 million to $10 million in assets and liabilities in its petition.
The court filed a notice of deficient Chapter 11 filing on the petition date and scheduled a hearing for failure to be represented by counsel, PacerMonitor reported.
First Chapter 11 filing dismissed
A hearing was held on Jan. 29, 2026, and Judge Elizabeth S. Stong signed an order on Feb. 2 dismissing the Chapter 11 case, according to court papers.
The debtor filed a motion to reconsider dismissal of the case on March 3, which was denied by an order signed by Stong on April 14.
The Alton distills a variety of whiskeys and its Peace Vodka at its distillery, which opened in 2010.
The Alton distills whiskey, bourbon, rye
The Alton Classics include the company's New York Straight Rye Whiskey and New York Straight Bourbon Whiskey, made with natural yeast and Catskill Mountain water and aged in charred American oak.
The Alton's Old Casks Reserve consists of bourbon, wheat whiskey, rye whiskey, and buckwheat spirit.
The Lachlan Collection includes Lachlan Buckwheat Spirit and Lachlan Double Cask Single Malt, and its Alton Blended Whiskeys include Abermooie Blended Bourbon, Emmalynn Blended Rye Whiskey, and Lachlan Blended Malt Whiskey.
Distillery wins several gold medals
The Alton has received several awards for its spirits, as it won a 2024 Best Bourbon Gold Medal awarded by The Fifty Best for its 5-year-old New York Straight Bourbon Whiskey and a 2023 Best Rye Whiskey Gold Medal from The Fifty Best for its 5-year-old New York Straight Rye Whiskey.
The company also won a 2023 Bartender Spirits Awards Gold Medal for its New York Straight Rye Whiskey, and a 2023 Bartender Spirits Awards Bronze medal for its Peace Vodka.
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This story was originally published April 18, 2026 at 6:33 AM.