Craft Distiller Westward Whiskey Files for Chapter 11 Bankruptcy Protection

(Photo: Westward Whiskey)

Portland, Oregon-based distillery Westward Whiskey announced on Wednesday it filed for Chapter 11 bankruptcy protection under Subchapter V, a move the company says will help it restructure for long-term success as an independent craft distiller.

Despite a rise in consumer interest last year, CEO Thomas Mooney said the decision is a necessary response to a mix of economic pressures and industry challenges. Westward plans to continue normal operations during the restructuring process.

In a statement, Mooney cited several reasons for the filing: a broad decline in demand for bottled spirits, rising costs due to inflation and tariffs, limited market access for small distillers and large financial commitments made under different economic conditions.

“We have chosen to embark on this process because we are confident that Westward has a bright future, and restructuring will position us to compete and win in the marketplace as it exists today, not as it was in the past,” Mooney said in a news release.

The company also pointed to significant investments in production and inventory, which have contributed to financial strain. Mooney emphasized that the company remains committed to delivering its premium whiskeys and that customers should expect no disruption in service.

Subchapter V of Chapter 11 is designed for small businesses seeking to reorganize while continuing to operate. It allows companies to restructure debts with fewer legal hurdles than traditional bankruptcy filings.

Westward Whiskey, based in Portland, is one of the best (perhaps the best, in the opinion of this writer) American single malt distilleries in existence and has grown a dedicated following. Mooney said the filing is part of a broader strategy to adapt to current market conditions while remaining independent.

Westward Whiskey dropped the second edition of its Milestone American Single Malt last year, and it was incredibly impressive, coming in at No. 4 on Bottle Raiders’ “100 Best Whiskeys of 2024, According to the Internet’s Most Trusted Spirits Critics” list.

Click here to see how different critics rated it.