Closed, "lost," or "silent" whisky distilleries, as you may know, are facilities that have ceased production entirely. Once the remaining casks in their warehouses are sold or emptied, no more of that specific liquid will ever be created, which is why these whiskies are so highly prized by collectors and enthusiasts alike.
A demolished whisky distillery refers to a facility that no longer exists and has been entirely torn down, ensuring that no more of its spirit will ever be produced. Because the physical buildings are gone and the remaining casks are steadily consumed, the liquid becomes increasingly rare and sought after.
Distilleries typically close or are demolished due to a variety of economic and logistical factors, including overproduction and market slumps like the 1980s drop in demand for blended Scotch, historical crises such as U.S. Prohibition and various economic depressions, and company consolidation where parent companies shutter less efficient or redundant sites to streamline operations.