Alistair McAlinden and Geoff Jacobs from Interpath were appointed joint administrators to GlenWyvis Distillery Limited last week following “a prolonged period of financial pressure” for the Scottish gin and whisky business.
Founded in 2015 in the Scottish Highlands, GlenWyvis Distillery was set up to bring its local community of Dingwall together through the creation of a distillery owned by residents.
Dingwall’s last whisky distillery closed in 1926. After a 90-year absence, GlenWyvis revived the town’s lost distilling tradition, and made its own history by becoming the world’s first community-owned distillery. Backed by circa 4,000 members, it is also the UK’s largest Community Benefit Society (CBS) by membership number.
Challenging conditions across the whisky market, higher operating costs and ongoing external pressures and disputes have placed considerable strain on the business and its available funding. This has resulted in its cash reserves being depleted.
Several options have been explored in an effort to rescue the business, including external fundraising. However, this did not secure the necessary capital to allow it to continue to trade as a going concern.
Production has now stopped, while the administrators seek to secure the owned whisky stocks and distillery equipment ahead of a potential sale. Over the coming days, communications will be issued to the parties who own private casks.
All three members of staff at the CBS have been made redundant.
“These are challenging times for Scotland’s 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,” commented Alistair McAlinden, head of Interpath in Scotland and joint administrator.
“For GlenWyvis, the lack of future funding available has meant that there was no option but to appoint Administrators. With 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.
“We 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.”
