Blue Spirits Distilling files for Chapter 7 bankruptcy

The briefing

Local craft distillery Blue Spirits Distilling has filed for Chapter 7 bankruptcy, leaving the Chelan Douglas Regional Port Authority in a holding pattern over its Cashmere Mill District lease. The port had budgeted slightly more than $175,000 in revenue from the distillery for 2026 before the June filing. Founded 14 years ago in a Chelan garage by Jeffrey and Heidi Soehren, Blue Spirits sold its spirits at more than 50 retail locations across Washington.