The owner of Bladnoch Whisky Distillery, near Wigtown, has gone into liquidation with accountants Ernst and Young being appointed to dispose of the assets.
Businessman Raymond Armstrong restored the distillery after it was closed about 20 years ago by United Distillers.
He spent years restoring the distillery which started producing the famous Lowland malt whisky around 2000.
Eight people are employed at the distillery.
Dumfries and Galloway Labour MP Russell Brown said: "This is a successful local distillery that is vital to the local economy both in terms of direct jobs but also in associated jobs in tourism, in what is a remote rural area."