U.S. Distillery Goes Under: Young Ohio Whiskey Producer Owes Millions

The American A.M. Scott Distillery has filed for Chapter 11 bankruptcy protection. The Ohio-based distillery is burdened with total debts of $3.35 million, while assets amount to less than $500,000. Under Chapter 11, the company can continue operating for now as it works to restructure its finances.

The bankruptcy filing was submitted on December 22 to the U.S. Bankruptcy Court for the Southern District of Ohio. It’s a major step for a distillery that has only been active a few years.

A.M. Scott Distillery was founded in 2022 by Anthony Scott and set up shop in Troy, Ohio. The distillery positioned itself as a versatile craft producer with a portfolio spanning whiskey, rum, vodka, and gin. Notably, at the time of writing, all products are listed as sold out on the official website.

That makes the timing of the bankruptcy all the more painful. While many young distilleries struggle with unsold inventory, this case appears to be driven by tax pressure combined with deeper structural financial issues.

Court documents show that multiple government agencies rank among the largest creditors. The U.S. Alcohol and Tobacco Tax and Trade Bureau has a claim of $15,956.20. There is also an outstanding debt of $25,379 owed to the Internal Revenue Service.

The Ohio Department of Taxation has filed several claims as well. The largest, totaling $31,689, relates to sales tax. Taken together, these figures suggest the distillery consistently struggled to meet its tax obligations.

The bankruptcy of A.M. Scott Distillery fits a broader pattern. According to the American Craft Spirits Association, as of last August there were 64 active craft distilleries in Ohio. Nationwide, the United States is home to 2,282 active craft distillers.

Even so, the sector is under pressure. The U.S. craft spirits market shrank for the second consecutive year since 2016. Over the past year, volume fell to 12.7 million cases, down from 13.5 million a year earlier. Revenue came in at $7.58 billion, reflecting a 6.1 percent decline in volume and a 3.3 percent drop in value.

A.M. Scott Distillery isn’t the only one stumbling. In recent months, Rogue Ales & Spirits, Luca Mariano Distillery, and 52 Eighty Distilling also filed for bankruptcy. There are, however, some bright spots: Westward Whiskey was rescued by private investors in October, and Middle West Spirits acquired Old Elk to secure that brand’s future.

For A.M. Scott Distillery, the coming period will determine whether Chapter 11 paves the way for a restart or proves to be just a prelude to a final shutdown.

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