San Antonio-based whiskey distillery Devils River Holdings LLC has filed for Chapter 11 reorganization in U.S. Bankruptcy Court for the Western District of Texas.
The company, which produces an array of craft whiskeys and operates a speakeasy-style downtown drinking and dining spot, owes $1 million to $10 million to as many as 99 creditors, according to its May 1 filing. The document also values the company’s assets between $1 million and $10 million.
It’s not uncommon for businesses to include a wide range of potential assets and liabilities in their first bankruptcy-court filing. Attorneys typically provide more precise numbers in later paperwork.
Devils River began in 2017 as a retail brand, securing distribution across a large swath of the U.S. In 2021, the business opened a fancy facility inside a former department store at 401 E. Houston St. built in 1926. Its downtown headquarters and distilling operation also includes a main bar and dining area, a basement speakeasy and an outdoor music stage.
In its filing, Devils River lists Dallas law firm McDermott, Will & Emery ($317,000); Kentucky-based distributor Sazerac ($259,000); and landlord 401 E. Houston Street AREA Real Estate ($132,000) as its biggest creditors.
Devils River isn’t the only U.S. craft distiller to seek relief in bankruptcy court recently. The East Coast’s Boston Harbor Distillery filed for Chapter 11 bankruptcy protection in April, and Portland, Oregon-based Westward Whiskey, one of the industry’s pioneering brands, sought reorganization in a Delaware bankruptcy court the same month.
Facing continued inflation and other difficult trends, liquor producers nationwide reported a rare annual sales drop in 2024, according to the Distilled Spirits Council of the United States (DISCUS). Producers’ overall revenues declined by 1.1% for the period, while American Whiskey like that produced by Devils River was down by 1.8%.
“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” DISCUS President Chris Swonger said in a statement.
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This article appears in Apr 30 – May 13, 2025.