American Bourbon Industry Takes Another Hit With Latest Foreclosure

The financial troubles of America's Bourbon industry got a little worse this week with the foreclosure of Kentucky's LF Heritage Distilling Company. A judge in Scott County ordered the foreclosure and sale of the Georgetown property that doubles as the owners' personal residence.

LF Heritage Distilling Company, formerly known as Limestone Farms, began operations in 2022 and quickly rose to fame among the Kentucky Bourbon community. The fledgling distillery was added to the prestigious Kentucky Bourbon Trail earlier this year despite being just a few years old.

"LF Heritage Distilling Company's Kentucky Bourbon Whiskeys have earned top honors at the prestigious International Wine and Spirits Competition, surpassing some of the world's most renowned brands," reads the Kentucky Bourbon Trail website.

Distillery Owed Millions

Court records show that Darin and Beth Dillow's distillery owes upwards of $5 million in unpaid bills to contractors and construction companies whose employees claim that they were never paid for their work. One of those companies, Woodford Excavation and Transport of Versailles, has a lien on the property for almost $1.3 million alone.

Lawsuits began rolling out in 2025 after roofing work and equipment installation was finished in April but allegedly never paid. This week, Scott County Circuit Judge Jeremy Mattox found LF Heritage Distilling and its owners liable for both of those claims. They now owe around $787,000 to contractors at KTF and another $39,000 to Rooftek. The judge ordered foreclosure and sale of the property to pay back the liens against it.

"KTF feels vindicated that some of the debt that Dillow owes to KTS and its subcontractors will be paid from this sale," attorney Eric Eaton said in a statement, "KTF looks forward to resolving the balance of the indebtedness owed by Dillow and his companies in due course.” Court records show that three different banks also have mortgage interest in Dillows's property.

Expansion Plans Halted

LF Heritage Distilling Company previously had plans to expand to a second location prior to the lawsuits and foreclosure. The new property is also subject to a different lawsuit with yet another company claiming that its contractors were never paid.

Now instead of expanding further, LF Heritage Distilling has shut down and removed all digital traces via its website and social media profiles.

This is just the latest in a string of legal setbacks, including bankruptcies, for bourbon distilleries all around Kentucky. A major trend during the first half of the decade, Kentucky bourbon seems to have hit a traditional boom-to-bust situation. Waning interest, tariffs hurting international sales, and high state taxes for aging barrels have led to industry wide financial struggles. Two other distilleries, Kentucky Owl and Luca Mariano, are just some of the Kentucky bourbon businesses currently in foreclosure.

Related: This Bottle of American Whiskey Is the Most Expensive Ever Sold