Another Award-Winning Whiskey Distillery Files for Bankruptcy as Spirits Industry Decline Continues

Seattle-based bourbon producer 2Bar Spirits has filed for Chapter 11 bankruptcy protection, reporting more than $1.07 million in debts and a sharp decline in revenue. The distillery and tasting room remain open and continue operating, according to TheStreet.

The company, which operates as 2Bar LLC, filed its petition Oct. 30 in the U.S. Bankruptcy Court for the Western District of Washington. Court documents list approximately $156,000 in assets and more than $1.07 million in liabilities, including about $813,000 in secured debt.

The filing comes after a significant drop in revenue. 2Bar reported more than $489,000 in revenue in 2025, compared with approximately $182,000 during the first 10 months of 2026. The company generated more than $381,000 in gross revenue in 2024.

The bankruptcy petition does not identify a specific reason for the filing. Founder and owner Nathan Kaiser, who opened the distillery in 2010, was not immediately available for comment.

Washington Trust Bank is the company’s largest secured creditor, with more than $634,000 owed. Other secured claims include more than $124,000 owed to the Small Business Administration and more than $53,000 to TD Auto Finance.

The distillery produces four bourbon expressions, including its standard straight bourbon, a higher-proof version and two wine- and amaretto-barrel-finished bourbons. Its products are sold through retailers including Walmart, Albertsons, Safeway, Fred Meyer, Trader Joe’s, Total Wine and BevMo, along with independent retailers across Washington.

2Bar’s name comes from the Kaiser family’s South Texas ranch, where relatives reportedly produced moonshine during Prohibition. The company says its production team uses Pacific Northwest grain to make its spirits at one of Seattle’s early bourbon distilleries.

2BAR Spirits Bourbon won “Superior Gold” at the Tokyo Whisky & Spirits Competition in 2025, according to an Instagram post.