Shuttered Kentucky Whiskey Distillery Owes More Than $26 Million, Bank Says in Lawsuit

The Garrard County Distillery. (Photo: Staghorn)

On Friday, the Lexington Herald Leader reported that Garrard County Distilling Co., which closed this year after less than 14 months in operation, is being taken to court by Truist Bank, which claims the distillery owes it more than $26 million.

Owned by the Atlanta-based Staghorn, Garrard County Distilling Co. opened in January 2024. The distillery was said to have cost more than a quarter-billion dollars. In February, Staghorn announced it was bringing in former Widow Jane Master Distiller Lisa Wicker to lead distillation efforts, hailing her as “our obvious first choice.”

In March 2025, employees were furloughed, and in April the distillery officially halted production. Now, it’s heading to court over the claim from Truist Bank. The company has also been sued over unpaid construction bills.

Truist Bank said in a motion for an emergency receiver that Garrard County Distilling’s “poor performance … coupled with the fact that Borrowers’ operations have ceased completely — leads to the unavoidable fact that the Borrowers’ business has failed and the value of the Business Assets is unquestionably and rapidly diminishing,” according to the Herald Leader.

Truist says the company took out multiple loans with it, including a mortgage on the distillery property, and failed to meet the terms of the loans.

As of April 3, Truist claimed in its lawsuit that the company owed $26,159,069.16 for principal, interest, late charges and other fees.

Doss & Horky, a Kentucky contractor, additionally is suing the distillery for $2.2 million owed for construction.