<\/p>\n
GlenWyvis became the biggest community-owned distillery<\/p>\n
Many independent distilleries are battling for survival amid rising costs, working capital constraints and changing drinking trends, according to an insolvency expert.<\/p>\n
Alistair McAlinden of Interpath said \u201cthese are challenging times for Scotland\u2019s whisky industry\u201d as he and Geoff Jacobs were appointed joint administrators to the first community-owned distillery.<\/p>\n
Founded in Dingwall in 2015, GlenWyvis Distillery was backed by about 4,000 society members but cash problems were reported last month when it warned that administration was a likely outcome.<\/p>\n
Its backers were understood to include former SNP Westminster leader Ian Blackford and the former deputy first minister Kate Forbes.<\/p>\n
Increased operating costs and ongoing external pressures and disputes have all placed significant strain on the business and its available funding which resulted in cash reserves being depleted. It recorded a \u00a3292,000 loss last year.<\/p>\n
Over recent months, the Society\u2019s Management Committee has considered a range of options to address this position and secure the Society\u2019s future. <\/p>\n
This included a comprehensive process exploring options for external fundraising with a view to securing the additional capital required by the business. Unfortunately, this process did not secure the necessary capital to allow the Society to continue to trade as a going concern.<\/p>\n
The administrators were called in on 5 October and will focus on securing the Society\u2019s owned whisky stocks and distillery equipment ahead of any sale of these assets. Over the coming days, communications will be issued to the parties who own private casks. Three members of staff have been made redundant. <\/p>\n
Mr McAlinden, head of Interpath in Scotland, said: \u201cThese are challenging times for Scotland\u2019s whisky industry. We are aware of many independent producers up and down the country who are battling hard to keep their head above water in the face of rising costs, as well as oversupply and working capital strain from long maturation cycles which have coincided with a global cost of living crisis and changing drinking trends among younger generations.<\/p>\n
\u201cFor GlenWyvis, the lack of future funding available has meant that there was no option but to appoint Administrators. <\/p>\n
\u201cWith funding exhausted, there will be no distilling of whisky or gin while we look to explore how best to maximise realisations from the assets of the Society. We would ask all potential interested parties to contact us as a matter of urgency.<\/p>\n
\u201cWe understand that a significant number of members and customers own private casks held through the Society and that the position of those casks will be an immediate concern. Further information will follow to confirm arrangements for those parties and their casks.\u201d<\/p>\n
\t #Distilleries #battling #survival #GlenWyvis #fails #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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