As Americans are slowing down on their consumption of alcohol and the ongoing tariffs enacted by President Donald Trump, the whiskey industry has seen its share of struggles. Adding to a growing number of other whiskey producers, the A.M. Scott Distillery in Ohio just filed for bankruptcy amid a time of uncertainty in the industry.
In a report from Newsweek, it was shared that the A.M. Scott Distillery filed for Chapter 11 bankruptcy protection, a spirits distiller based in the city of Troy and founded in 2022. Like many spirit distillers, A.M. Scott produced bourbon and rye whiskey, gin, and other spirits.
In the bankruptcy filing that was entered on Tuesday (December 23) in the Southern District of Ohio, A.M. Scott listed between 100 and 199 creditors with assets of $500,000 in an estimate and liabilities of $1 to $10 million. A.M. Scott wrote in its filing that the business faced challenges of rising costs, contract disputes, and the shuttering of retail locations.
“While current year-over-year performance is down approximately 75 percent, the business is positioned for a strong rebound,” A.M. Scott wrote in their filing, brimming with optimism. “With a simplified structure, energized team, and revitalized brand strategy, A.M. Scott Distillery is well-positioned to emerge stronger and more sustainable than ever before
A.M. Scott joined other whiskey brands in filing for bankruptcy protection, such as LMD Holdings, House Spirits Distillery, Boston Harbor Distillery, and Stoli Group USA, which produces the award-winning whiskey brand, Kentucky Owl.
With many reporting their drinking way less after the spirits gold rush that was the pandemic era, companies are forced to contend with both failing sales numbers and President Trump’s aggressive tariff policy. Global trade partners, such as Canada, a huge market for American spirits, have largely banned sales in several provinces.
Further, large brands such as Jim Beam are pausing production for all of 2026 as the company is sitting on a large stock of barrels that are not being sold at the clip in previous years. Further, these brands that produce at a high rate have to pay heavy taxes to store their liquid wares.
There is also the “California Sober” trend of many bypassing alcohol for hemp-derived cannabis beverages that sees its own upcoming hurdles after the dissolution of the Hemp Farm Bill in the last government funding bill.
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