Killarney Brewing & Distilling Company (KBD), a notable name in Ireland’s drinks manufacturing industry, has entered liquidation after failing to secure crucial investment.
This decision comes after the company faced a slew of financial and operational challenges, exacerbated by the lasting effects of the COVID-19 pandemic and the subsequent economic downturn.
A statement from KBD outlined the difficulties the company encountered, including “significant and sustained challenges in recent years, stemming from the lasting effects of the Covid-19 pandemic, delays in opening our state-of-the-art distillery in Fossa, global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures.”
The company experienced additional strain due to high tariffs on Irish whiskey exports to the United States. KBD had initially reached a preliminary agreement to merge with a U.S.-based strategic partner earlier this year, but the partner ultimately chose not to proceed, according to the statement. This led KBD to enter the examinership process, a legal procedure in Ireland aimed at protecting financially troubled companies.
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Examinership Fails to Secure Investment for Killarney Brewing & Distilling
Despite their efforts during the examinership, KBD was unable to find a new investor within the court-mandated timeframe. This resulted in the appointment of James Anderson of Deloitte as the liquidator by Ireland’s High Court. The examinership process spanned three months, offering temporary protection from creditors while seeking investment. However, the challenging economic climate and market conditions hindered the company’s ability to attract a suitable investor.
The company expressed its gratitude to employees, shareholders, and the local community, stating, “We are also deeply grateful to our shareholders and wider investment community for their support and belief in our vision, and to our loyal customers, partners, and the local community in Killarney who have stood by us at every turn.”
The closure of KBD is another setback for the Irish whiskey industry, which has recently seen the closure of Waterford Whisky and an examinership filing for Powerscourt Distillery just last month. The closure also results in the redundancy of all 54 KBD employees, further highlighting the widespread impact on the local community.
