Beloved rum, bourbon, vodka brand files Chapter 7 bankruptcy

While the American spirits market has proven resilient, it's facing challenging economic and social headwinds.Spirits supplier sales in the United States were down -1.1% in 2024, totaling $37.2 billion, while volumes rose 1.1% to 312.2 million 9-liter cases, according to data from the Distilled Spirits Council (DISCUS).“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” DISCUS President Chris Swonger said. “Our sales dipped slightly, but consumers continued to choose spirits and enjoy a cocktail with family and friends.”That success, however, has not been without struggles, as a number of distilleries have closed since 2024. "Active U.S. craft distillers dropped from 3,069 in August 2024 to 2,282 in August 2025. Seven hundred and eighty-seven fewer operations in a single year," according to The American Craft Spirits Association.Now, craft distillery Rotten Little Bastards has joined that list, as it has filed for Chapter 7 bankruptcy and will be liquidated.Liquor industry faces challengesBrown-Forman CEO Lawson Whiting explained the challenges facing the liquor industry during his company's fourth-quarter earnings call.“The consumer and their wallet just doesn’t have as much money in it,” he said. “They’re spending money on things like vacations and lodging, and other things like that. But then when it trickles down, and they go to the grocery store, I think in some cases, spirits have fallen out of the basket a little bit.”The liquor giant also acknowledged that President Donald Trump's tariff situation create uncertainty for the industry.“We know it’s highly volatile,” Leanne Cunningham, the company’s CFO, said while fielding a question about tariffs during the conference call. “None of us can predict what’s going on.”That concern is broadly shared among distilleries.“We’re very worried about what tariffs could do to our industry,” said Eric Gregory, president of the Kentucky Distillers Association, reported WKYT.More Bankruptcy:Key auto parts and services company files Chapter 11 bankruptcyKey travel brand files for Chapter 11 bankruptcySelf-driving-car company files for Chapter 11 bankruptcy protectionThe industry also faces some social changes as younger Americans drink less.“Young adults in the U.S. have become progressively less likely to use alcohol over the past two decades, with the percentages of 18- to 34-year-olds saying they never drink, that they drank in the past week, and that they sometimes drink more than they shouldall lower today. At the same time, drinking on all three metrics has trended up among older Americans while holding fairly steady among middle-aged adults,” according to a Gallup poll.Rotten Little Bastards faces liquidationRotten Little Bastards, which started as a "retirement dream turned reality," has filed for Chapter 7 bankruptcy protection, according to The Island Packet.In its bankruptcy filing, the company listed assets of $152,554.72 in total property, including $1,061.47 in cash, $2,169.25 in deposits and prepayments, $80,000 in inventory, and $66,740 in machinery, equipment, and vehicles, among other things. The company has $395,265.12 in liabilities, including secured and unsecured claims. Its secured debt is a U.S.

Small Business Administration loan from United Community Bank in Bluffton, worth $321,445.52. The rest of the debt comes from unsecured credit accounts and a rejected lease. Funds will be available for distribution to unsecured creditors, the company said in the filing.The company confirmed its shutdown on its Facebook page.Owner Brigid Fackrell said its remaining inventory will be available for purchase at South Carolina liquor stores and online distributors Cellar.com and Tipxy.com as long as supplies last.The company will be liquidated under the Chapter 7 bankruptcy filing. Distilleries have been struggling for a number of reasons.

Shutterstock Rotten Little Bastards Chapter 7 bankruptcy factsThe owners shared on Facebook the reasons behind their decision to close."We realized then that our current level of stress was not sustainable. We contacted a broker and started looking for investors or someone to buy the business. The current economy and changes in how people drink alcohol were not in our favor and we could not find a buyer. So, with that, we decided to close," Brian and Brigid Fackrell posted.Rotten Little Bastard Distillery is a craft distillery located at 2139 Boundary Street in Beaufort, South Carolina, according to the company's website.The distillery produces handcrafted spirits, including vodka, moonshine, gin, rum, and bourbon-style whiskey, it shared.The business was founded by Brian and Brigid Fackrell, who moved to South Carolina from Nevada and launched the distillery as a retirement business venture, according to LC Weekly.RLB Distillery Company Inc., doing business as Rotten Little Bastard Distillery, filed for Chapter 7 bankruptcy on March 10, 2026 in the U.S. Bankruptcy Court for the District of South Carolina, according to Bankruptcy Observer.A Chapter 7 bankruptcy means a court-appointed trustee will oversee liquidation of the company’s assets to repay creditors, according to the U.S. Courts website.Related: Award-winning beer brand shuts down after Chapter 7 bankruptcy filing