The Stoli Group USA has filed for Chapter 11 bankruptcy protection in the wake of a costly cyber attack and an ongoing feud with the Russian government.
The company, which makes the popular brand of Stolichnaya vodka, said it is still trying to recover from a cyber attack that is forcing it to rebuild its systems and operate its business manually.
Company CEO Chris Caldwell said the legal battles with the Russian government have also taken a financial toll. Russia has targeted the company in court after it exiled the owner, Yuri Shefler, labeling him a member of “extremists groups working against Russia’s interests.”
Shefler has been at odds with Russian President Vladimir Putin for years and stepped up the hostility after Russia invaded Ukraine. He even changed the name of the company from Stolichnaya to the Stoli Group. In addition to making vodka, the company also owns Kentucky Owl bourbon.
Russia has sued the Stoli Group because it makes its own version of Stolichnaya vodka, clearly stating that it is made in Russia. The Stoli Group’s version is made in Latvia.
In the bankruptcy filing, the Stoli Group said it is experiencing financial difficulties, with liabilities of between $50 million and $100 million.