Danville Distillery Files for Chapter 11 Bankruptcy Soon After Opening

Just a few months after its grand opening, a Danville distillery has resorted to filing for Chapter 11 bankruptcy, as revealed in court documents.

Luca Mariano Distillery, nestled on a sprawling 550-acre farm in Danville and renowned for its farm-to-bottle production of Kentucky straight bourbon whiskey and straight rye whiskey, initiated the bankruptcy process on July 17 in the Eastern District of Michigan.

Founded and owned by Francesco Viola, the craft distillery celebrated its opening in June.

The bankruptcy proceedings were filed in Michigan due to the fact that the distillery’s primary business address is located there.

This Chapter 11 filing indicates that LMD Holdings LLC, a real estate entity linked to Luca Mariano Distillery, is dealing with 1 to 49 creditors and is grappling with liabilities estimated between $1 million and $10 million.

Viola expressed in a statement to the Lexington Herald-Leader that the bankruptcy was, “to maximize the value of the assets for all stakeholders. Luca Mariano Distillery and LMD Holdings have a successful business model, have weathered the prior economic challenges in our industry and are poised to emerge successfully, ideally with the support of its employees, customers, community and creditors.”

As per the Secretary of State’s business entity search portal, as of August 4, both LMD Holdings LLC and Luca Mariano Distillery are listed in “Bad” standing. This status implies non-compliance with certain legal requirements of the commonwealth.

Despite its current challenges, a hopeful Instagram post on July 18 declared, “we are poised to emerge successfully.”