Citing inflation, market access constraints and more, Portland, Oregon-based Westward Whiskey this week filed for Chapter 11 bankruptcy protection. The petition was filed under Subchapter V, which can provide a more manageable and efficient means to restructure debts while continuing operations.
Westward CEO Thomas Mooney maintains that the company will continue to operate as usual and that it has a bright future. Mooney released the following statement:
“Earlier this week, Westward Whiskey filed for Chapter 11 (Subchapter V) bankruptcy protection, a mechanism designed to allow small businesses to restructure for success in the future. Though consumer interest in Westward grew last year, this is a necessary step as we explore financial and strategic alternatives to better position our company to thrive as an independent craft distiller. Throughout this restructuring process, we will continue to operate as usual and bring our world-class whiskeys to our growing consumer base.
“The need for this restructuring process is driven by numerous challenges that have put a significant strain on our business: a decline in demand for bottled spirits in general; the rising cost of goods and services due to inflation that will only accelerate with tariffs; market access constraints that make it difficult for independent craft spirits producers to reach consumers; large obligations that we entered into, at a different time and under different circumstances; and significant investment toward increasing production and inventory.
“We have chosen to embark on this process because we are confident that Westward has a bright future, and restructuring will position us to compete and win in the marketplace as it exists today, not as it was in the past.”