British Honey Co heads for administration
Dodd’s Gin owner The British Honey Company (BHC) intends to appoint administrators after failing to secure further funding.
The BHC was founded in 2014 and owns Union Distillers and The London Distillery Company.
The English spirits company said it had ‘regrettably’ been made to take ‘necessary steps’ to bring in administrators, naming FRP Advisory as its potential administrator.
The firm began a strategic review in October 2022 to explore financing options, including a potential sale of the business.
In December 2022, the company’s board said it had secured a £750,000 (US$922,000) loan to support near-term working capital needs, which concluded the strategic review.
At the time, the board said the company needed to secure additional funding in early 2023, however it proved ‘extremely challenging’ with no offers received.
Despite making ‘significant’ cost savings to preserve its cash, BHC’s board said it needed further funding by the end of March 2023, based on forecasts.
The BHC said it would make a further announcement once administrators are formally appointed.
The move comes after a tumultuous few years for the company.
Last year, the firm closed its Worminghall distillery and moved production to its Union Distillers site in Market Harborough, Leicestershire.
A trading update from the company in January 2023 said sales were impacted in the second half of 2022 due to the squeeze on the UK economy and ‘more pronounced’ consumer spending.
At the time, The BHC expected to report £6 million (US$7.3m) in revenue for the 2022 full year, down from £7.96m (US$9.7m) in 2021.
In January 2020, the firm acquired Dodd’s Gin owner The London Distillery Company for an undisclosed sum.
Several months later, RedLeg spiced rum maker Distil and The BHC terminated their joint venture to produce botanical spirits due to the pandemic.
In February 2021, The British Honey Co purchased Union Distillers, producer of Two Birds spirits, for £8m (US$11.2m).