Two U.S. subsidiaries of Stoli Group, Stoli Group USA and Kentucky Owl, have filed for Chapter 11 bankruptcy protection following a devastating cyberattack that severely disrupted their operations. The ransomware attack, which occurred in August 2024, caused widespread data breaches and forced the company to revert to manual bookkeeping for critical functions.
According to court filings, the cyberattack not only derailed business operations but also created significant friction with lenders, exacerbating financial challenges. The affected subsidiaries are now restructuring $84 million in debt as they work to recover.
A Cautionary Tale: Lessons in Cyber Resilience
Stoli’s experience highlights the rising risks businesses face from cyberattacks and the need for cybersecurity measures. The attack on Stoli led to:
- Severe operational disruptions.
- Inability to access centralized business software until 2025.
- Strained relationships with lenders due to delayed financial reporting.
As cyber threats become increasingly sophisticated, organizations must prioritize cybersecurity to protect operations and financial stability.
Charles IT’s Recommendations for Cybersecurity Protection
To help businesses safeguard against devastating attacks like the one experienced by Stoli, Charles IT, a Connecticut-based leader in managed IT services, recommends the following proactive measures:
- Endpoint Security: Implement advanced endpoint protection tools to detect and mitigate threats before they spread.
- Data Backup and Recovery Plans: Regularly back up critical business data and test recovery procedures to ensure minimal disruption.
- Network Monitoring: Utilize 24/7 monitoring to detect suspicious activity early.
- Employee Security Awareness Training: Educate teams on recognizing phishing attempts and other common attack factors.
- Ransomware Preparedness: Develop a comprehensive response plan, including simulated attacks, to ensure your organization is ready to act swiftly in the event of an incident.
Cyberattacks can strike any organization, regardless of size or industry. To learn more about how Charles IT can help your business stay protected, click here.
