Sazerac Acquires Bankrupt Bourbon Distillery, Bringing ‘New Jobs and Economic Opportunity’ to Kentucky

Garrard County Distilling Co. (Photo: Sazerac)

On Friday, Sazerac officially announced its acquisition of the Garrard County Distilling facility in Lancaster, Kentucky, putting the Buffalo Trace owner in control of a distillery that went from a massive independent bourbon project to receivership less than two years after opening.

The acquisition, announced Friday, expands Sazerac’s distilling footprint across Kentucky and gives the company additional production capacity as it looks to keep pace with demand for its spirits portfolio.

The facility opened in January 2024 under Atlanta-based Staghorn and was developed at a cost reportedly exceeding $250 million. Production halted in April 2025 after the company ran into serious financial problems, including a lawsuit from Truist Bank alleging more than $26 million in outstanding debt.

Sazerac’s acquisition had been in the works for months. In February, a Sazerac-affiliated company acquired the majority of Garrard County Distilling’s debt from Truist. In June, that company, Tom Collins Distilling LLC, emerged as the sole bidder in a court-ordered auction and purchased the property for $20 million.

Sazerac has now confirmed that the Lancaster facility is officially part of its operations.

“We’re excited to become part of the Garrard County community,” Sazerac President and CEO Jake Wenz said in a statement.

The company said it expects to hire additional employees at the facility initially, with the workforce expected to grow as operations develop.

A New Chapter for a Troubled Distillery

The 210-acre Garrard County property includes two column stills and two 20,000-square-foot barrel warehouses. Sazerac said it plans to use the existing infrastructure to support production across its broader portfolio.

The facility’s new owner brings considerably more resources to the property than its previous operator.

Garrard County Distilling opened with ambitions of becoming one of Kentucky’s largest independently owned bourbon distilleries. But less than 15 months later, employees were furloughed and production stopped.

Truist Bank sued the company in April 2025, claiming it was owed $26.16 million in principal, interest, late charges and other fees. The distillery also faced lawsuits and liens related to unpaid construction bills.

The company ultimately entered receivership, setting the stage for the court-ordered sale.

The Sazerac deal represents a dramatic change in fortunes for the property. Rather than remaining a shuttered asset, the distillery will now become part of one of the largest spirits producers in the U.S.

The Garrard County acquisition adds to a series of major investments Sazerac has made across Kentucky.

The company owns Buffalo Trace Distillery in Frankfort, Barton 1792 Distillery in Bardstown and The Glenmore Distillery in Owensboro. Sazerac said nearly 3,000 employees are now part of its Kentucky operations.

“We need more supply to keep up with demand, and the addition of the Lancaster facility gives us valuable distilling capabilities to support that growth,” Wenz said.

Sazerac said it has invested approximately $50 million at Barton 1792 over the past five years, including new fermenters, expanded bottling operations and three aging warehouses that increased barrel storage capacity by 25%.

The company also completed a decade-long, $1.2 billion expansion of Buffalo Trace in January 2025. That project added a new still house, boiler house, bottling operation, visitor center, 20 fermenters and 19 aging warehouses.

At Glenmore, Sazerac said it has invested approximately $40 million since 2020 to improve processing, barrel equipment, distillery controls and bottling lines.

The company is also building additional barrel-aging capacity in Kentucky, including new warehouses in Laurel and Taylor counties.

Garrard County Distilling was one of several high-profile Kentucky whiskey projects to encounter financial trouble as the market shifted. The facility’s court-ordered sale ultimately valued the property at a fraction of the more than $250 million reportedly invested in its development.

Sazerac’s $20 million winning bid, made through Tom Collins Distilling, was first reported in June. At the time, the company said the transaction was subject to customary closing procedures and declined to provide details about its plans for the property.

Sazerac has not specified which brands will be produced at Garrard County or when full-scale distilling will resume. But the company says the existing infrastructure will be put to work supporting its broader portfolio, with additional hiring expected as operations expand.

For Garrard County, the acquisition also brings the prospect of turning a major failed bourbon investment into a working distillery and source of local jobs.

“Sazerac’s decision to invest here brings new jobs and economic opportunity to our county while positioning this Distillery for continued growth,” Garrard County Judge Executive Chris Elleman said.