English gin producer Burleighs has appointed administrators and is in the process of selling the business to an unnamed bidder.
According to the UK’s official public record website, The Gazette, Burleighs Gin filed a petition to wind up its business on 27 October in the High Court. The petition will be heard at the High Court in London tomorrow (14 December).
Burleighs hired David Elliot and Bai Cham of Begbies Traynor as its joint administrators on 5 December.
Last month, the Leicestershire-based gin producer put its business up for sale through property consultant Lambert Smith Hampton. Offers for the business were to be submitted by 1 December.
“After reviewing the company’s financial position, the directors of Burleighs concluded that a successful resolution to a very long-standing debt could not be reached,” said Elliot.
“As such, one of the secured lenders had no other option but to move the business into administration so that a successful outcome could be reached for as many stakeholders as possible.
“Following the appointment, Begbies has successfully marketed the business for sale and a preferred bidder has been selected.
“It is hoped that a successful conclusion to the sale process will be reached by Christmas with the business starting the new year under new and supportive ownership.”
Burleighs is on His Majesty’s Revenue & Customs’ (HMRC) current list of deliberate tax defaulters, which names those who have knowingly made errors in their tax returns or have failed to comply with tax rules.
HMRC stated the total amount of penalties charged to Burleighs Gin was £63,939.13 (US$78,650), covering the period of 2 January 2018 to 11 October 2018.
The Spirits Business has contacted Burleighs Gin for further comment.
The move to sell the business came several weeks after Burleighs announced on Facebook on 7 November that it had temporarily shut the distillery, stopped orders and postponed its events.
In July 2017, the gin maker refuted a report that the company was going into administration.
In February last year, Burleighs secured a £250,000 (US$354,000) investment to expand into new markets.
The company has made several fundraising efforts in recent years, including surpassing its £100,000 (US$130,000) fundraising target to support the development of new products and raising just under £500,000 (US$644,850) worth of investment in one month.
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Author: Nicola Carruthers