Buffalo Trace Owner Acquires Bankrupt Kentucky Bourbon Distillery for $20 Million

(Photo: Garrard County Distilling Co.)

Sazerac has acquired the former Garrard County Distilling property in Lancaster, Kentucky, after submitting the winning $20 million bid during a court-ordered auction, paving the way for new life at one of the state’s newest bourbon production facilities, LEX 18 reported.

Sazerac’s intentions to purchase the distillery were first reported in March and are now official.

The purchase was made through Tom Collins Distilling, a Sazerac-affiliated company, during a master commissioner sale held Friday in Garrard County. According to court records, Tom Collins Distilling was the sole bidder for the property, which had previously been appraised at more than $27.9 million.

In a statement, Sazerac confirmed the transaction.

“Sazerac Company was the successful bidder in the auction process for Garrard County Distilling,” the company said, per The Spirits Business. “The transaction remains subject to customary closing processes. At this time, we don’t have additional information to share. We will provide more information if and when appropriate.”

Court filings show Tom Collins Distilling became the property’s primary creditor after acquiring its multi-million-dollar debt earlier this year.

Garrard County Distilling began production in January 2024 after being developed by Atlanta-based Staghorn as what was billed as the largest independently owned bourbon distillery in Kentucky. The 210-acre facility, located about 30 minutes south of Lexington, ceased production in April 2025 after financial troubles mounted.

The shutdown followed a lawsuit from Truist Bank seeking to recover approximately $26 million in debt, including unpaid loans, property taxes and liens. The company subsequently entered receivership.

Local officials welcomed news that a major whiskey producer will take control of the site.

“I feel pretty confident it will be a successful venture, just seeing what they’ve done in the past and their history,” Lancaster Mayor Michael Gaffney told LEX 18. “I think it’s really, really important for us to get that thing back up and going.”

Diane Bisher, executive director of the Garrard County Chamber of Commerce, said the dormant distillery had weighed heavily on the community over the past year.

“The judge executive, the mayor, the whole county, the city council, the chamber — everybody’s been waiting to hear the news that we heard today,” she said, according to LEX 18.

The acquisition further expands Sazerac’s presence in Kentucky, where the company owns Buffalo Trace Distillery and several other whiskey operations. While the company has not announced plans for the Garrard County site, the purchase could return one of Kentucky’s newest distilleries to production after more than a year of inactivity.