Trouble in Bourbon Country Continues as Financially Troubled Distillery Faces Foreclosure

(Photo: LF Heritage Distilling Co.)

A Scott County judge has ordered the foreclosure and sale of property tied to a financially troubled Kentucky distillery, according to reporting from the Lexington Herald-Leader.

The March 23 order sends the property at 197 Soards Road in Georgetown to the master commissioner for sale. The site is owned by Darin and Beth Dillow and is listed as the address for LF Heritage Distilling Co., formerly known as Limestone Farms.

The distillery is part of a broader wave of financial and legal issues across the alcohol industry. Multiple producers are facing lawsuits, liens or bankruptcy proceedings. These include Kentucky Owl and its owner Stoli, which are in bankruptcy, and Luca Mariano Distillery in Boyle County, which has filed for bankruptcy while owing at least $34.5 million. Other cases include Garrard County Distilling Co., Westward Whiskey and Uncle Nearest.

It was previously reported that LF Heritage Distilling had been added to the Kentucky Bourbon Trail despite ongoing financial and legal challenges.

The Soards Road foreclosure stems from a dispute over unpaid construction work tied to a planned distillery, bottling facility and commercial center. Court records show subcontractors completed work by April 2025 but were not paid.

One contractor, KTF, filed a lien for nearly $787,000. Another company, Rooftek, filed a lien for about $39,000. Scott Circuit Judge Jeremy Mattox ruled the Dillows are liable for both claims. The order also notes that at least three banks hold mortgage interests in the property.

KTF also accused the Dillows of fraud, alleging false representations led the company to invest $480,000 in the project. The judge did not rule on that claim as part of the foreclosure order.

In a statement reported by the Herald-Leader, Eric Eaton, attorney for KTF, said: “KTF feels vindicated that some of the debt that Dillow owes to KTF and its subcontractors will be paid from this sale. KTF looks forward to resolving the balance of the indebtedness owed by Dillow and his companies in due course.”

The distillery is also involved in a separate lawsuit tied to another Scott County property on Paynes Depot Road. In that case, Colt Engineering Inc., doing business as Thoroughbred Engineering, is seeking the sale of the property to recover more than $741,000 in liens. The property is owned by Dudley and Wanda Jennings, who are named as defendants along with Darin Dillow.

Local reporting cited by the Herald-Leader indicates more than $5 million in total liens may be tied to that project. The site had been cleared for development, but construction had not progressed as of last summer.

LF Heritage Distilling previously counted former University of Kentucky quarterback Tim Couch as an investor and released a commemorative bourbon tied to his 2024 induction into the College Football Hall of Fame. Couch and his brother, Greg, are no longer involved and are not part of the current litigation.