The Street reported on Tuesday that Westward Whiskey filed for Chapter 11 Bankruptcy on April 6 with the U.S. Bankruptcy Court for the District of Delaware. According to the outlet, the brand’s parent company, House Spirits Distillery LLC, shared that the brand had a $9.8 million loss with just $3.44 million in sales.
The outlet shared that Westward’s biggest unsecured debts were owed to Wine Co., with an outstanding amount of $101,000. The brand additionally had outstanding sums with Traveler’s Insurance for over $43,000 and $34,000 to the U.S. Alcohol Tobacco Tax and Trade Bureau (TTB.)
According to The Street, Westward’s CEO Thomas Mooney filed for bankruptcy due to “decline in demand for alcohol and spirits following the COVID Pandemic, overproduction of its whiskeys as a result of buildup of inventory, overcapacity of its distillery facilities after investing heavily in production capacity and increased costs and inflation from the overall global economy.”
Westward Whiskey shared a statement with us, claiming that the distillery was focusing on restructuring and would continue its operations. The brand remains open for business and is hopeful about the future.
“Though consumer in interest in Westward grew last year, this is a necessary step as we explore financial and strategic alternatives to better position our company to thrive as an independent craft distiller,” said Westward Whiskey CEO Thomas Mooney in a statement. “Throughout this restructuring process, we will continue to operate as usual and bring our world-class whiskeys to our growing consumer base.”
Westward Whiskey’s Situation Reflects The Realities of A Troubled Industry
Westward Whiskey’s calling card is the brand’s distinctive American single malts and its ability to capture the terroir of the Pacific Northwest in liquid form. The team at Westward is an eclectic bunch of ex-brewers, winemakers and Michelin-trained chefs, and each person working at the distillery brought their diverse knowledge to the production process.
Our Founder, Jay West, has visited Westward — via scooter, no less – and tasted the brand’s gorgeous and award-winning whiskeys. The brand’s distiller’s beer is some of the best in the business, which makes sense considering the brewing influence on its production process.
Westward won its first double gold at the San Francisco World Spirits Competition, according to The Street. Yet perhaps the brand’s greatest strength was its ability to create subversive whiskeys.
“Westward had an unusual attitude towards experimentation: if it sounded cool, they’d do it,” West wrote about the distillery after paying it a visit in the Summer of 2023.
Westward joins the ranks of other distinctive and promising distilleries, like Waterford in Ireland, to file for bankruptcy. Like its American counterpart, Waterford was a whiskey brand about capturing terroir, or a sense of place, according to Whisky Advocate.
The innovative Irish whiskey brand had Mark Reynier, the founder of Bruichladdich, at the helm. Yet despite the brand filing for bankruptcy in November, Reynier appears determined to right the course for Waterford.
“The fight isn’t over,” Reynier said according to Whisky Magazine. “It’s a recalibration. The quality of our whisky, the integrity of our vision, they’re too good to let go. I’ll do my utmost to rescue Waterford.”
We can only hope for the same for Westward.
No responses yet