The spirits industry has struggled in 2025 with several distilleries filing for bankruptcy and in some cases closing operations.
Many of the distillers blamed the economic difficulties on rising labor and product costs driven by inflation and changes in consumer attitudes towards spirits.
Unfavorable economic issues have caused the US spirits industry to suffer a 2.8% decline in sales and a 3.2% decline in volume in the first half of 2025, according to NeilsenIQ, Beverage Industry reported.
Among the distilleries that filed for bankruptcy and went 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 hit by rising costs and declining consumer spending.
Distiller Rogue Ales & Spirits, parent company Oregon Brewing Company, closed operations on November 14th and filed for Chapter 7 liquidation on November 24th. The company claimed debts to Lincoln County and the Port of Newport in Oregon led it to financial difficulties.
Whiskey brand Wilder Whiskey, the Kannapolis, NC-based maker of ready-to-drink Wilder Whiskey Seltzer, filed for Chapter 7 on Dec. 23 to liquidate its assets before completing its fourth year in business.
Wilder Whiskey is owned by its service company, Full Circle, which is based in Florida. The company did not give a reason for filing for bankruptcy, but Wilder Whiskey was seeking investors on its website.
52eighty Distilling Corp., October 14, 2025
Rogue Ales & Spirits/Oregon Brewing Company, November 24, 2025
Wilder Whiskey, December 23, 2025
In other cases, distillers closed operations but did not have to file for bankruptcy.
Tacoma, Wash.-based McCallum & Sons Whiskey Co., a Scotch whiskey and cognac bottler, disclosed on its website that it is liquidating its inventory and closing for good on April 30, 2025, and has not filed for bankruptcy.
Heritage Distilling Company is closing its tasting rooms and distilling operations.Shutterstock
And now, award-winning spirits distiller Heritage Distilling Company, which made whiskey, vodka, gins and rum, has closed its distillery 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.
Gig Harbor, Wash.-based spirits distillery. first announced 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 move its distillery operations to contract manufacturing.
“It was an extremely difficult decision and one we did not take lightly,” said IP Strategy Co-Founder and CEO Justin Stiefel. “For more than 13 years, our tasting rooms have been the heart of our spirits business and the community cornerstone for the connections we’ve built.”
“But changing consumer behavior, rising costs and recently enacted and proposed statewide taxes have made future investment in this part of our business operations unsustainable,” the founder said.
The company, founded in 2011, also thought the time was right to close the tasting rooms, as many of the retail leases were up for renewal in 2026.
“With many of the retail leases 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 for commercial space,” Stiefel said.
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 less alcohol and alternative products, legislative failure to equalize the taxation of ready-to-drink beverages with wine and beer, and input from investors and stakeholders seeking to streamline operations to improve the profitability of operations as reasons for the closure.
Heritage said it will focus on contract manufacturing 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 the Angel of the Winds Casino Resort in Arlington, Wash.
Heritage Distilling Company’s website also lists a tasting room coming soon to the Tonto Apache Tribe’s Mazatzal Casino in Payson, Arizona, and a Ko-Kwel Casino Resort in Oregon.
While the restructuring will reduce annual revenue by approximately $3 million per year, it will also reduce annual operating expenses by approximately $5 million. It will eliminate $1.1 million in unabsorbed manufacturing overhead per year and provide a net reduction in working capital requirements of over $2 million per year.
The company will also eliminate more than $2 million in annual interest and other expenses and reduce debt by $19.3 million, according to an October statement.
Related: Another popular beer brand is closing for good without bankruptcy
This story was originally published by TheStreet on January 7, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
