UK whisky firm enters liquidation with £500k debts leaving customers uncertain | UK | News
A British whiskey company has entered liquidation after accumulating debts running into the thousands.
Scottish company Whiskey Merchant Trading Limited, which operates brands including Cask 88 and Braeburn Whiskey, has been forced into administration due to serious financial difficulties.
Griffins’ Stephen Hunt has been appointed as liquidator.
The decline has left “thousands of global clients uncertain about asset ownership” after the Edinburgh-based firm previously raised nearly £80 million in investment funding.
But customers need not despair as administrators confirmed the business has been rescued following the sale of significant assets to Edinburgh Cask Management (Resolution) Limited.
The new owners are currently working to reunite investors with their kegs.
Griffins said: “As part of this sales agreement, ECMR has committed to resolving issues faced by customers who have purchased kegs from the companies but have not yet been located.
“They will replace these barrels and offer swap options for better stock.
“Each offer will be tailored to the specific circumstances of individual customers and ECMR will provide further details in due course.
“In addition, ECMR has agreed to take over keg management where applicable and will work with warehouse operators to resolve outstanding warehouse charges.
“Warehouse owners will make agreements to facilitate the transfer of kegs to their rightful owners.” The new owners are working to “resolve debts, transfer kegs, and create verified warehouse accounts for customers.”
“The company grew rapidly, gaining investors around the world, but the company could not keep up with rising costs and expenses,” Griffins added.
ECMR said: “Our focus throughout the month was to contact all customers whose kegs were not currently accounted for, ensuring that each keg was appropriately reconciled and transferred to its rightful owner.”
Outstanding storage charges of £500,000 have already been paid.
