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Stoli Group Files for Bankruptcy After Ransomware Attack and Geopolitical Disputes

Ransomware attack leaves Stoli Group's IT infrastructure severely disrupted. Geopolitical disputes and a lengthy legal battle add to the company's woes, pushing it towards bankruptcy.

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2 min read
This picture shows a vodka bottle placed here. In the background, there is a wooden wall.
This picture shows a vodka bottle placed here. In the background, there is a wooden wall.

Stoli Group Files for Bankruptcy After Ransomware Attack and Geopolitical Disputes

Stoli Group, the American spirits company, faces a grim outlook following a series of cyberattacks and geopolitical disputes. The firm, which owns Stoli Group USA and Kentucky Owl, has been grappling with the aftermath of a ransomware attack and political fallout from its stance on Ukraine.

The recent ransomware attack in August 2024 has left the company's IT infrastructure severely disrupted. The firm has been forced to operate manually, leading to substantial operational issues. The attack also prevented Stoli Group from providing crucial financial reports to its lenders, further exacerbating its financial woes.

The company's financial situation is dire. It is currently around $78 million in debt. This, coupled with the operational disruptions and the loss of key financial reports, has led Stoli Group USA and Kentucky Owl to file for bankruptcy in the US stock market.

The company's troubles began in August 2023 when it was hit by a ransomware attack. While there is no official evidence that this attack was authorized by the Russian Federation government, the firm suspects retaliation from the Putin regime for its support of Ukraine. This resulted in the confiscation of two distilleries valued at $100 million by the Russian government.

The company has been embroiled in a 20+ year court battle to defend its vodka trademarks from the Russian state enterprise FKP Sojuzplodoimport. The firm has spent 'dozens of millions of dollars' in this legal battle. Despite these efforts, the company's systems are not expected to be fully restored no earlier than the first quarter of 2025.

Stoli Group's future hangs in the balance. The company's IT systems are expected to remain disrupted for over a year, and its financial situation is precarious. The loss of its distilleries and the ongoing legal battle have further compounded its difficulties. The company's bankruptcy filing in the US stock market is a stark reminder of the severe impact these challenges have had on its operations.

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