Leicestershire distillery facing uncertain future
A Leicestershire-based producer of premium spirits could be facing an uncertain future after its parent company announced its intention to appoint administrators.
Union Distillers produces a range of gins, vodkas and rums, as well as an absinthe and an espresso vodka liqueur, under the “Two Birds” brand.
The Market Harborough firm was established in 2012 and acquired by the British Honey Company, an Oxfordshire-based producer, in 2021.
British Honey has been in financial peril for some time. It launched a strategic review to explore financing options and a potential sale last year and received a £750,000 loan in December to support its short-term working capital requirements.
However, despite this, the firm announced today (21 March) that it has been unable to secure the additional funds it needs to remain afloat.
In a statement, the company described the process as “extremely challenging.”
The firm said “significant costs savings have been made in the business in order to conserve cash”, but added that further funding will be required by end of March 2023 “based on current management forecasts.”
It has now filed a notice of intention to appoint administrators with a view to bringing in FRP Advisory to handle its affairs. It has also requested that its shares are suspended from trading on AQUIS.
As yet, it is unclear what the news will mean for Union Distillers. Its last available accounts show the distillery made a profit of £307,758 in 2021 despite the substantial losses posted by its parent.