Washington Distillery Blue Spirits Enters Chapter 7 Liquidation After Award Wins

Blue Spirits Distilling, celebrated for its pickle-flavored and espresso vodkas, has filed for Chapter 7 bankruptcy in the Eastern District of Washington, signaling the end of its operations. The filing will lead to the liquidation of the distillery’s assets under a court-appointed trustee, and both its manufacturing site in Cashmere and its popular tasting room in Leavenworth are now closed. The company previously garnered gold medals at the 2025 New Orleans Spirits Competition, highlighting its reputation for quality.

However, financial difficulties emerged after a temporary rent deferral in 2022 and nearly $590,000 spent on building improvements at a Port-owned property. Diminishing distribution sales further strained the business, prompting the bankruptcy move.