Distill Ventures-backed House Spirits Distillery, which trades under its Westward Whiskey brand’s name, has initiated bankruptcy proceedings to reorganise its business as it faces “liquidity challenges”.
The company filed for bankruptcy in Delaware last week under Subchapter V, a process for small businesses with lower debt. Founder & CEO Thomas Mooney is leading the restructuring effort, aiming to keep Westward Whiskey operating in the future while the distillery maintains normal operations.
The bankruptcy filing follows Diageo’s recent announcement that it would stop accepting new brands into its Distill Ventures accelerator programme, which had backed Westward since 2018.
Court documents revealed that Westward has been hit by a convergence of industry headwinds, including a post-pandemic shift in consumer behaviour that has dampened demand for premium spirits over the past two years. At the same time, the company significantly expanded its production capacity and warehouse space, leaving it with excess inventory that has not delivered the anticipated revenue.
Founded in 2004, Westward is based in Portland, Oregon, and is renowned as an early pioneer in American single malt whiskey.
