Stoli Group USA Files for Bankruptcy After Cyberattack and Legal Disputes with Russia
Stoli Group USA, the American branch of the Luxembourg-based SPI Group, filed for Chapter 11 bankruptcy in Dallas, Texas, on November 27, 2024. Headquartered in New York, the company faced a significant cyberattack in September 2024, though the exact date remains unknown. The attack disrupted global operations, forcing Stoli to operate manually while rebuilding its systems. Although the nature of the attack has not been confirmed, evidence points to a potential ransomware incident. Adding to its challenges, the company reported liabilities of $50–$100 million and has struggled with declining alcohol demand.
Stoli Group's challenges are compounded by ongoing legal battles with the Russian government over ownership of the Stolichnaya vodka brand. Yuri Shefler, the company’s founder, has been exiled from Russia since 2002 for opposing President Vladimir Putin. In 2022, the brand was rebranded as "Stoli" to distance it from Russia following boycotts linked to the Ukraine invasion. Despite its production in Latvia, Stoli has faced reputational and financial pressures tied to its Russian origin. Additionally, the Russian state labeled Shefler and the company as "extremists," intensifying legal disputes. Stoli Group continues to navigate financial and operational challenges amidst these multifaceted pressures.