Updated August 2, 2013, 7:11 a.m.

CORRECTION: The Jailers is not bankrupt as originally reported.

Jailers Tennessee Whiskey “outran its financial backing,” according to Dave Scheurich, the brand’s leading ambassador and former Woodford Reserve general manager.

Jailers parent company, Capital Brands, has discontinued production for the Tennessee whiskey, Breakout Rye Whiskey and the Forbidden whiskey cream liqueur, Scheurich says.

Just last year, Jailers was touted as a welcomed addition to the whiskey world, earning decent scores in publications and receiving positive press in the likes of USA Today. I wrote a story about the whiskey for the beverage trade publication Tasting Panel, mentioning the company’s $50-million distillery plans for Pulaski, Tennessee.

The Jailers brand was purchasing its bulk whiskey from an undisclosed Tennessee distillery. An industry rumor alleged the unknown distiller cut off its supply to Capital Brands, but Scheurich says that never happened.

“Our supply was never cut off,” says Scheurich, who received the 2012 Whisky Advocate Lifetime Achievement award.

Scheurich says the company started too big and had too much debt to attract investors.

In addition to Jailers, the Forbidden Liqueur and Breakout Rye will no longer be bottled by Capital Brands. It’s unknown whether Capital Brands is selling the rights to the Jailer’s, Forbidden and Breakout Rye.

“This is extremely disappointing,” says Scheurich, who’s now consulting with Angel’s Envy and other start-up businesses. “All three were excellent products.”

Other former Capital Brands employees were not immediately available for comment.