Bankrupt Kentucky Whiskey Distillery Sells for $19.5 Million

(Photo: Luca Mariano)

A bankrupt Kentucky bourbon distillery has found a buyer, with its sprawling campus, whiskey inventory and brand assets set to change hands in a $19.5 million deal.

According to The Spirits Business, Nevada-based wine and spirits company Apogee 21 was selected as the winning bidder to acquire Luca Mariano Distillery through a court-supervised bankruptcy sale.

Luca Mariano Distillery filed for Chapter 11 bankruptcy protection in late 2025, only months after opening its new Danville, Kentucky, facility. The company entered the formal sale process in January.

The $19.5 million acquisition includes the distillery’s 529-acre campus, production facilities, real estate, intellectual property and approximately 6,600 aging bourbon barrels.

Court filings previously estimated the distillery’s liabilities at between $10 million and $50 million. Among its creditors is Keystone Industrial, which is owed approximately $1.28 million for construction work.

To finance the acquisition, Apogee 21 plans to raise $7 million from a newly formed strategic investor group, with the remaining funds expected to come from senior secured debt and other financing sources. The company is also pursuing a $20 million Series D fundraising round.

In a separate move, Apogee 21 signed a letter of intent to acquire California’s Rod & Hammer’s whiskey brand and its San Luis Obispo distillery.

That proposed deal includes the distillery, tasting room, canning line, whiskey inventory, trademarks and other brand assets. The company said the acquisition would expand its whiskey production capabilities while supporting ready-to-drink cocktail production for Rod & Hammer’s and other brands in its portfolio.

Apogee 21’s current spirits portfolio includes Noble Oak Bourbon and Rye, John Lee Hooker whiskey, Monkey in Paradise Vodka, Andale Tequila and Blue Nectar Tequila, along with several wine brands.

Earlier this year, the company acquired Noble Oak from Edrington, adding approximately 11,500 aging whiskey barrels to its inventory. Last month, nearly 1,800 cases of Noble Oak were stolen in what authorities described as one of the largest bourbon thefts in the Philadelphia area.

The company said the acquisitions are part of a broader strategy to build a vertically integrated spirits business with distilling, aging, bottling, warehousing, hospitality and direct-to-consumer capabilities under one umbrella.

Apogee 21 also said it plans to leverage artificial intelligence and digital marketing to improve operations while expanding private barrel programs, tourism experiences and other revenue streams.