2Bar Spirits Owner Files for Chapter 11
Seattle-based distillery 2Bar LLC has filed for bankruptcy as falling alcohol consumption cuts into its revenue.
Updated on Nov. 1, 2026 in Debt Relief
Live Poll
Are you drinking less alcohol than you did a few years ago?
2Bar LLC filed for Chapter 11 bankruptcy on Oct. 30 in the U.S. Bankruptcy Court for the Western District of Washington. The company's revenue fell from over $489,000 in 2025 to over $182,000 in the first 10 months of 2026.
Why it matters
The filing reflects broader pressure on the spirits sector as fewer Americans drink alcohol and industry sales decline. Seattle residents and Washington consumers who buy local craft spirits may see effects on the distillery's operations.
The petition lists about $156,000 in assets against over $1.07 million in debts, including about $813,000 in secured claims. Whether creditors will recover these amounts under the Chapter 11 process has not been determined.
The players
2Bar LLC
A Seattle-area craft spirits producer that operates a distillery and tasting room while its Chapter 11 case proceeds.
Washington Trust Bank
A regional lender and the largest creditor in the case, owed over $634,000 by the debtor.
The details
2Bar's distillery and tasting room continue operating as usual during the case. The debtor's largest creditor is Washington Trust Bank, owed over $634,000, followed by the Small Business Administration at over $124,000.
Timeline
2022: 67% of U.S. adults reported drinking alcohol.
2024: 2Bar generated over $381,000 in gross revenue.
2025: U.S. spirits sales fell 2.2% to $36.4 billion.
Oct. 30, 2026: 2Bar filed its Chapter 11 petition.
Market Trend
Gallup reported that 54% of U.S. adults drank alcohol in 2026, matching the all-time low from 2025 and down from 67% in 2022. Spirits sales fell 2.2% in 2025 to $36.4 billion, placing 2Bar's revenue decline within a sector-wide slowdown.
Customers of 2Bar's tasting room and retail products should expect normal operations to continue during the case. Small business owners facing similar revenue declines may review their creditor obligations and available restructuring options.
The takeaway
Falling demand can quickly strain small producers carrying secured debt, so monitoring revenue against fixed obligations early gives businesses more options. Owners facing similar pressure can seek guidance on restructuring before filing becomes necessary.
Further reading
For more on handling business debt, explore Debt Relief coverage in Seattle.
Source note: This article includes information reported by Lexington Herald Leader.
Live Poll
Are you drinking less alcohol than you did a few years ago?
