Stoli, the well-loved vodka brand, has filed for Chapter 11 bankruptcy recently, making the drinks company just another in the long list of struggling companies. But, it may not be for reasons you expect.
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The major vodka drinks label, previously known as Stolichnaya, has been a staple of US shelves for years. The Latvian-produced liquor provides a reliable and cheap vodka, perfect for mixing. But, it has been under attack for some time, by the Russian government.
Amazingly, Stoli has been in the sights of the Federation for a significant amount of time. Stoli Group CEO Chris Caldwell informs people that "The Stoli Group has been targeted by the Russian Federation since it was formed nearly 25 years ago." The ongoing legal battle is what has pushed the drinks company to bankruptcy.
Russian Pressure Has Pushed Stoli Drinks to Bankruptcy
Since the forming of the Russian Federation, they have tried to take the drinks company into their ownership. However, Russian-born billionaire, Yuri Shefler, went into exile back in 2000 for opposing Putin. Since then, he has been under fire.
Russia claims that the drinks company, now on the brink of bankruptcy, belongs to the Russian state. Over the years, the government has forced Stoli to spend tens of millions of dollars in legal fees. These continued attacks and pressures are one of the elements pushing Stoli into the red.
Recently, the company was a victim of a massive cyber attack. This left the whole company on its knees, having to rebuild distribution from the ground up. Since then, they have had to resort to much more basic outdated systems, further damaging their income.
The mounting problems with supply and constant pressures from the Russian government have made things tough for Stoli. Chapter 11 bankruptcy won't put the drinks company in the ground though. This filing will put them into administration, requiring professional teams to step in and take control. Distribution will continue, but special measures will be put in place.
Since the end of the pandemic, fewer people have stocked their shelves with liquor. This has impacted many drinks companies around the world. If you want to support your favorite drink, you'll just have to get out there and buy it. Save the industry, one hangover at a time.
