Portland, Oregon-based American whiskey producer Westward Whiskey filed for Chapter 11 bankruptcy this week in U.S. Bankruptcy Court for the District of Delaware.

The distillery says it will continue operations as usual during the reorganization. CEO Thomas Mooney expressed optimism for the brand’s future.

He referred to the bankruptcy protection as “a mechanism designed to allow small businesses to restructure for success in the future.” 

The brand celebrated 20 years in business last year.

“Though consumer interest in Westward grew last year,” Mooney said in a statement, “this is a necessary step as we explore financial and strategic alternatives to better position our company to thrive as an independent craft distiller. Throughout this restructuring process, we will continue to operate as usual and bring our world-class whiskeys to our growing consumer base.”  

Westward has been a leader in the rise of American single malt whiskey, which received its own legal definition late last year. The style has been on the rise in recent years.

“The need for this restructuring process is driven by numerous challenges that have put a significant strain on our business: a decline in demand for bottled spirits in general; the rising cost of goods and services due to inflation that will only accelerate with tariffs; market access constraints that make it difficult for independent craft spirits producers to reach consumers; large obligations that we entered into, at a different time and under different circumstances; and significant investment toward increasing production and inventory,” Mooney said.

“We have chosen to embark on this process because we are confident that Westward has a bright future, and restructuring will position us to compete and win in the marketplace as it exists today, not as it was in the past.”

Read more: Westward Whiskey Celebrates 20 Years with New Milestone Expression