Overview: Blue Spirits Distilling has ceased operations following a Chapter 7 bankruptcy filing. The Chelan County enterprise shuttered its manufacturing facility and tasting room after winning gold medals for unique flavored vodkas.
The Full Story
Blue Spirits Distilling filed for Chapter 7 bankruptcy on June 11 in the Eastern District of Washington, according to court records. The Chelan County enterprise is known for its distilled spirits that included a proprietary Tommy Bahama line. The company pulled the plug on its manufacturing facility in Cashmere and the popular tasting room in the town of Leavenworth.
In Cashmere, the doors are locked and company property remains inside. Blue Spirits Distilling has collapsed into Chapter 7 bankruptcy, locking its doors and heading for total liquidation. A court-appointed trustee will move to sell off all remaining assets. Unlike a Chapter 11 filing, which allows a struggling company to reorganize while attempting to stay in business, the Chapter 7 filing puts Blue Spirits on the path toward liquidation.
Production & Profile
The distillery produced a range of spirits including vodka, gin, whiskey, rum and tequila. The brand is famous for its cult-favorite pickle and espresso flavored vodkas. Both the pickle vodka and espresso vodka earned gold medals at the 2025 New Orleans Spirits Competition. The competition states that its gold designation is reserved for spirits demonstrating excellence in aroma, taste, balance, and finish.
Copper distillation equipment was utilized at the facility. Throughout its run, the distillery racked up an enviable trophy case with these major wins. Challenges related to its dwindling distribution business also led to financial hardship.
Brand & Industry History
Behind the awards, there were signs of financial troubles. In 2022, Blue Spirits received a temporary rent deferral at its Cashmere Mill District property after telling the Chelan-Douglas Regional Port Authority it was facing financial challenges. The company reportedly said it had poured nearly $590,000 into improvements at its Port-owned buildings, which included work on restrooms and the HVAC system.
What This Means
The Chapter 7 filing puts Blue Spirits on the path toward liquidation rather than reorganization. Now, a court appointed trustee will move to sell off all remaining assets. The closure impacts the manufacturing facility in Cashmere and the tasting room in Leavenworth.
Consumer Takeaway
The doors are locked at the Cashmere location and the Leavenworth tasting room is shuttered. Company property is still inside the Cashmere facility while assets are to be liquidated by the court-appointed trustee. The brand previously produced a proprietary Tommy Bahama line alongside its award-winning spirits.
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