Seattle-based 2Bar Spirits files for Chapter 11 bankruptcy
Bourbon distillery 2Bar LLC has filed for Chapter 11 bankruptcy protection as the craft spirits industry faces broad financial headwinds.
Seattle distillery 2Bar LLC has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Washington. The filing follows a period of financial decline for the distiller, with revenue dropping from approximately $498,000 in 2025 to roughly $182,000 during the first ten months of 2026.
According to court documents, 2Bar carries over $1.07 million in debt against $156,000 in assets. The company’s financial struggles occur amidst a cooling market for craft spirits, where high production costs, tariff uncertainty, and elevated inventory levels have constrained many independent producers.
Despite the filing, 2Bar intends to maintain operations. Counsel for the distillery, Steven M. Palmer, confirmed the company is pursuing a streamlined reorganization process for small businesses, aiming to continue whiskey production while restructuring its debt obligations.