Opened over two years ago as Kentucky’s largest new distillery, the idle 210-acre site faces liquidation to satisfy millions in debt. Find out why Sazerac may be the big winner.
A Garrard County circuit judge has ordered the former Garrard County Distilling Co. property to be sold at auction within the next 90 days. The massive distillery has sat idle for over a year before being sent to the auction block following a multimillion-dollar civil court judgment, marking a turbulent end to the facility that once promised to be a major player on Kentucky’s Bourbon Trail.
The Brief, Troubled History Of Garrard County Distilling Co.
The facility, located on 210 acres at 440 Southern Soul Way in Lancaster, was opened in January 2024 by Atlanta-based premium spirits company Staghorn. Founded in 2018 by industry veteran Ray Franklin, Staghorn pitched the $250 million project as the largest all-new independent distillery in the state, promising to bring more than 60 jobs to Garrard County.
At launch, the 50,000-square-foot operation featured 18 fermenters and three aging rickhouses, utilizing limestone-rich water from the local aquifer to produce spirits under Staghorn's flagship "All Nations" bourbon and whiskey label.
However, the ambitious operation faced immediate financial distress. In addition to a core $26 million construction and operational loan from Truist Bank, Staghorn accumulated millions of dollars in outstanding contractor and vendor liens.
Franklin exited Staghorn at the close of 2024 to join Arizona-based online barrel platform Spirits Capital—an entity that has also since reportedly ceased operations. Left without leadership and facing mounting defaults, Staghorn shuttered the distillery in March 2025 after just 14 months in business. Truist Bank subsequently filed a lawsuit and successfully requested a court-appointed receiver to preserve the property's assets.
Behind Sazerac's Buyout of Garrard County Distilling’s Debt
The upcoming auction comes after a company named Tom Collins Distillery LLC secured a massive $27.9 million judgment against the facility's parent company to cover the unpaid loans, accrued interest, and legal fees.
Tom Collins is a corporate affiliate of global spirits giant Sazerac, the parent company of Buffalo Trace. In March, Sazerac stepped into the foreclosure process by purchasing Garrard County's mortgage and outstanding debt directly from Truist Bank. By buying out the bank, Sazerac positioned itself as the primary creditor.
Court documents indicate that Tom Collins Distillery intends to actively bid on the property during the public auction. Because Sazerac now holds the underlying debt, the auction creates a win-win scenario for the spirits giant: If Tom Collins is the winning bidder, Sazerac effectively absorbs the state-of-the-art distillery, equipment, and aging inventory into its portfolio by canceling out the debt. If an outside buyer outbids them, the law requires that Sazerac be paid off first from the auction proceeds until the entire $27.9 million judgment is satisfied.
The upcoming master commissioner's auction will liquidate the entire footprint, including the real estate, production equipment, stills, and the remaining whiskey barrels currently aging in the Lancaster rickhouses. A specific date for the sale has not yet been finalized by the court.
Photographs courtesy of Staghorn.com.
