A.M. Scott Distillery Files Bankruptcy Protection Ahead of Fraud Trial

A.M. Scott Distillery, a small Ohio-based spirits company known for handcrafted whiskey, vodka, and gin, filed for Chapter 11 bankruptcy protection in late December 2025, weeks before its founder was set to face a fraud-related trial. The company’s bankruptcy filing lists assets of less than $500,000 against about $3.35 million in liabilities, reflecting deep financial distress that left it unable to meet obligations and continue operations without court-supervised restructuring. 

The bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Ohio was a voluntary move under Chapter 11, which allows a business to reorganize debts while continuing limited operations as a “debtor in possession.” It indicates the distillery struggled financially amid mounting liabilities far exceeding its assets, making bankruptcy the most viable option to address creditor claims and possibly preserve some value rather than liquidate outright. 

Compounding these financial challenges, company founder Anthony “Tony” Scott was facing legal trouble at the time of the filing. Scott was arrested in early 2025 on charges that include allegedly depriving a victim of business product worth over $6,500 and attempting to defraud that person by writing a bad check. A pretrial hearing was scheduled for early January 2026, meaning the bankruptcy filing came just ahead of these criminal proceedings.

In addition to the criminal case, Scott and a business partner had been named in a civil lawsuit filed in September 2024 by an investor alleging unjust enrichment, breach of fiduciary duties, and other counts related to how separate business entities were operated under common branding. Although that suit was dismissed without prejudice in December 2025, the overlapping civil and criminal legal pressures likely contributed to the company’s financial and operational difficulties. 

Ultimately, A.M. Scott Distillery’s decision to seek bankruptcy protection ahead of a fraud trial appears driven by a confluence of severe financial strain, liabilities much larger than its limited assets, and significant legal challenges facing its leadership. The Chapter 11 filing gives the business a structured environment to address debts and potentially reposition itself while legal matters proceed, although the future of the distillery and its ability to emerge from bankruptcy remain uncertain.