Just over a year after beginning production, Garrard County Distilling Co. has closed, facing a $2.2 million lawsuit and other financial difficulties.

The lawsuit was filed in Garrard County Circuit Court by Doss & Horky, the contractor that structured the distillery, which is located in Lancaster, Ky, which is south of Lexington. According to reports by WLEX in Lexington and The Lexington-Herald, Doss & Horky placed a $2.2 million lien against the distillery’s property. The distillery was launched last January by Atlanta-based Staghorn, and the current owner is listed as GBRE, LLC, of Lexington.

Garrard County Distilling employees have been furloughed at least temporarily, per WLEX 18. Meanwhile, the distillery apparently is not operating. It had relaunched its lineup in January, reintroducing its All Nations brand.

The distillery operation itself is one of the largest independent distilleries in Kentucky – it features two 45-foot by 36-inch column stills with a capacity of as many as 150,000 barrels a year, founder Ray Franklin said in 2024. The distillery spans 50,000 square feet with 18 fermenters and three rickhouses.

When Garrard County Distilling opened in January 2024, hopes were high.

“Staghorn’s vision for Garrard County Distilling Co. is to craft the finest whiskeys and spirits in the world at scale to make an immediate impact in the market,” Staghorn Founder and President Ray Franklin, a 25-year industry veteran, said at the time. “To support this goal, we will be hiring nothing but the best in the business, respecting long-honored traditions and craftmanship to assure our products are nothing short of remarkable.”

Now, however, the lawsuit is pending and the distillery, which is a member of the Kentucky Distillers’ Association, reportedly also owes $250,000 in unpaid property taxes. In addition, the distillery also reportedly has ongoing lawsuits against two different contractors who helped construct the facility, and further liens reportedly have been filed against the property.

Franklin is no longer associated with the project, it has been reported. The company hasn’t spoken publicly about the lawsuit or when Garrard County Distilling might reopen.

Read more: Staghorn Opens Garrard County Distilling Co. in Kentucky