The spirits industry was in trouble in 2025, with multiple distilleries filing for bankruptcy and in some cases shutting down operations.
Many brewers blame the economic woes on rising labor and product costs due to inflation and changing consumer attitudes toward spirits.
According to the “Beverage Industry” report, data from NeilsenIQ showed that adverse economic issues caused the U.S. spirits industry’s sales to fall by 2.8% in the first half of 2025, and sales volume to fall by 3.2%.
Littleton, Colorado-based 52eighty Distilling Corp. was one of the distilleries to file for bankruptcy and cease operations, filing for Chapter 7 bankruptcy on Oct. 14, 2025, to liquidate its assets.
The company said it was hurt by rising costs and shrinking consumer spending.
Oregon Brewing Company, the parent company of Distiller Rogue Ales & Spirits, closed operations on November 14 and filed for Chapter 7 bankruptcy on November 24. The company claimed debts owed to Lincoln County, Oregon, and the Port of Newport put it in financial trouble.
Whiskey beverage brand Wilder Whiskey, the Kannapolis, N.C.-based maker of ready-to-drink Wilder Whiskey Seltzer, filed a Chapter 7 petition on Dec. 23 seeking to liquidate its assets before the end of its fourth year in business.
Wilder Whiskey is owned by its Florida-based fulfillment company, Full Circle. The company did not say why it filed for bankruptcy, but Wild Whiskey has been seeking investors on its website.
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52eighty Distilling Corp., October 14, 2025
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Rogue Ales & Spirits/Oregon Brewing Company, November 24, 2025
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Wilder Whiskey, December 23, 2025
In other cases, breweries have closed operations but have not been required to file for bankruptcy.
Tacoma, Washington-based McCallum & Sons Whiskey Co., a premium Scotch whiskey and cognac boutique, revealed on its website that it is liquidating inventory and will permanently close on April 30, 2025, and has not filed for bankruptcy.
Now, Heritage Distilling Company, an award-winning spirits distilling company that produces whiskey, vodka, gin and rum, is closing its distilling operations and five tasting rooms in Oregon and Washington on New Year’s Eve 2025 as part of an out-of-court restructuring of its business.
The Gig Harbor, Wash.-based spirits distillery first announced in October 2025 that it planned to close its tasting rooms in Gig Harbor, Wash., and two locations in Eugene, Ore., on Dec. 31 in Rosslyn and Tumwater, Wash., and shift its distillery operations to contract production.
“This was an extremely difficult decision, and one we didn’t make lightly,” said Justin Stiefel, co-founder and CEO of IP Strategy. “For more than 13 years, our tasting room has been the core of our spirits business and the cornerstone of the communities we connect.”
“But changes in consumer behavior, increasing costs, and recently enacted and proposed taxes at the state level make our future investments in this part of the business unsustainable,” the founder said.
The company, founded in 2011, also believes now is the right time to close its tasting rooms as many of its retail leases are up for renewal in 2026.
“Given that many of our retail leases are up for renewal in 2026, we believe now is the best time to implement these changes as it is no longer wise for businesses to sign additional long-term leases in retail space,” Stiefel said.
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Heritage Distilling Company Waterfront: Gig Harbor, WA.
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Roslyn Heritage Distilling Company: Roslyn, WA.
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Heritage Distilling Company Tumwater: Tumwater, WA.
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Heritage Distilling Company Whiteaker: Eugene, OR.
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Heritage Distilling Company 5 Street, Eugene, OR.
In addition to increased state tax and regulatory burdens, the company cited consumer shifts toward reduced alcohol consumption and alternative products, legislation failing to bring low-alcohol ready-to-drink beverages on tax parity with wine and beer, and comments from investors and stakeholders seeking to streamline operations to improve profitability as reasons for the business closures.
Heritage said it will focus on contract manufacturing partnerships, brand development, direct-to-consumer sales, wholesale development and partnerships with Native American tribes through the addition of branded tasting rooms at Tribal Beverage Network locations in and near the casino.
The spirits company currently operates Heritage Distilling Company at Angel of the Winds Casino Resort in Arlington, Washington.
Heritage Distilling Company’s website also lists upcoming tasting rooms at the Tonto Apache Tribe’s Mazatzal Casino in Payson, Arizona, and the Ko-Kwel Casino Resort in Oregon.
While the restructuring will reduce annual revenue by approximately $3 million annually, it will also reduce annual operating expenses by approximately $5 million. It will eliminate $1.1 million in unabsorbed production overhead expenses annually and result in a net reduction in working capital requirements of more than $2 million annually.
The company will also eliminate more than $2 million in annual interest and other charges and reduce debt by $19.3 million, according to an October statement.
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This article was originally published by TheStreet on January 7, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.