The liquor industry in the United States is going through a delicate period and the fall of AM Scott Distillery clearly lays out this scenario. The company, based in the Dayton and Troy area of Ohio, has voluntarily filed for Chapter 11 bankruptcy, a restructuring measure that allows it to continue operations while its financial structure is redefined. The petition was registered in the Bankruptcy Court of the Southern District of Ohio on December 22, 2025 and the company appears as a “debtor in possession” according to data published by . Bankruptcy observer.
The industry context appears to be a decisive factor. Various reports suggest that a continued decline in alcohol consumption habits in the country. A Gallup study found that only 54% of adults report consuming alcoholic beverages, the lowest level in nearly nine decades of measurements. The perception of health risks already associated with moderate consumption has solidified as a trend that directly impacts sales, as explained in the survey cited by Street.
Added to this decline in the domestic market is the decline in exports caused by trade tensions and tariffs. A report from the Distilled Spirits Council of the United States (DISCUS) reflected declines in shipments to Canada, the European Union, the United Kingdom and Japan. Its managing director Chris Swonger warned of the impact of this scenario on American distilleries, with significant declines in external sales and loss of competitiveness.
In this context, the AM Scott Distillery also faced particular difficulties. The founder of the brandAnthony Michael Scott was involved in a lawsuit with criminal charges in Mercer County. The case was reported by Miami Valley Today, although there is no confirmation that this situation is directly related to the bankruptcy. Scott pleaded not guilty in court.
The History of AM Scott Distillery
Despite its short history, the distillery had gained recognition in the craft spirits segment. The company was founded in Troy in 2022 and launched its first collection of vodkas, gins and bourbons in 2023, made within an accessible offer with a profile close to the public. Scott himself has highlighted enthusiasm for the project in previous statements To Dayton Daily Newsa media that also reported on the company’s change in strategy towards production and distribution, with less involvement in catering activities.
“The full collection is available now and we are proud of the product,” said Scott. “It was fantastic to see so many familiar faces and we also met many new customers. We are excited about the launch and our team is committed to continuing to develop new products.”
So far, no data has been published on the amount of debt, the asset estimate or the list of creditors. The company will continue to operate while the legal restructuring progresses. The case joins a growing list of distilleries affected by the same economic dynamics. Tasting Table noted that the decline in bourbon and whiskey sales is part of an overall decline in the spirits market following the outbreak of the pandemic, with changing habits among young consumers and greater health consciousness.
Companies that have gone through similar processes include Westward Whiskey, Boston Harbor Distillery, Devils River Distillery and JJ Pfister Distilling Co, among others, according to the report. Street based on court documents and industry reports. The bankruptcy of AM Scott Distillery confirms that the impact no longer reaches only large companies, but also family and artisanal projects that have found a place in the market in recent years.
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