Westward Whiskey announced on Thursday that the brand sold the bulk of its assets to a private investor group just 6 months after its bankruptcy filing in April. The United States Bankruptcy Court for the District of Delaware approved the sale, and the transaction will close on November 3. As a part of the transaction, Westward intends to shift to 100% independent ownership. Tom Mooney will continue to be the company’s CEO.
“Today, we celebrate a new beginning at Westward Whiskey, a bright new future that will allow us to compete and win despite an industry slowdown and broader economic headwinds,” said CEO of Westward Whiskey Thomas Mooney in a statement. “Our new, independent ownership structure gives us the freedom and flexibility to lean into the parts of our business that continue to shine — including our Westward Whiskey Club, direct-to-consumer business, and select wholesale markets where we have partnered with Pacific Edge Wine & Spirits.”
Westward Whiskey shared that the bankruptcy and restructuring process allowed the company to focus on evaluating on how to adapt in a challenging climate. In an exclusive interview with Mooney, the Westward CEO shared what he learned about filing for bankruptcy protection and cleared up some misconceptions.
“I’ve learned over the last ten days, since our filings became public, just how misunderstood and sometimes misused the concept of a bankruptcy protection filing is,” Mooney shared in the interview. “I see it in every headline that says, ‘files for bankruptcy.’ What you are filing for is actually protection to prevent bankruptcy, and I know it feels like semantics, but it means two different things.”
Mooney shared the very “very public” news that Diageo pulled out of investing in the brand when it ceased its Distill Ventures program. Westward had made many investments focusing on scaling up the company, and though Diageo dropping out was no surprise, it certainly harmed the brand.
“I think Diageo is making decisions that they feel they need to make for their overall business, and I think it makes a lot of sense that they need to focus their attention and resources on their larger brands,” Mooney expressed. “None of this surprised us, and we’ve done our best to manage this transition.”
It appears that perhaps the bankruptcy restructuring process actually is helping the brand, since Westward is now going back to its roots. A member of the group of investors includes Luis Fernando Leal, one of the original investors in the whiskey brand. Leal has served on Westward’s board since 2011.
“Along with my partners, I am thrilled to play a role in the future of Westward Whiskey,” Leal expressed. “We were among the original investors in the brand, and I have served on its board of directors since 2011. Thomas and the Westward team have the right vision, strategy and ability to propel Westward Whiskey to sustainable growth in the coming years. This is a difficult moment in the spirits industry, but a tremendous opportunity for Westward Whiskey.”
The brand shared that its sales are still seeing solid growth during a tough year. The company’s sales grew by 53% through the end of September, and it has already grown past its sales for all of 2024. The brand anticipates further growth during the highly lucrative period of October, November and December — or what the spirits industry refers to as OND.
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