ELLC founder buys business back

Alex Wolpert, the founder of East London Liquor Company (ELLC), has bought his business out of administration after failed negotiations with HMRC (His Majesty’s Revenue and Customs).

The issues arose with HMRC’s Time to Pay agreement, which allows businesses and individuals to pay owed tax in monthly instalments. HMRC’s website states that more than 90% of Time to Pay arrangements are completed successfully.

Last week it was revealed that restaurant chain Honest Burgers had faced similar issues regarding Time to Pay negotiations with HMRC.

Writing on LinkedIn yesterday (12 December), Wolpert said: “East London Liquor Co. was placed into administration this morning after tireless attempts to renegotiate with HMRC were refused.

“In taking on such drastic measures to counter HMRC’s demands, I have been extremely fortunate to have some incredibly supportive partners who have enabled us to buy the business out of administration so that I can continue as founder to steer East London to its next stage.

“This sadly leaves our shareholders in a position that we never planned to reach and have done all we can to avoid. I have personally reached out to all shareholders, who have a direct line of communication with me.”

Originally founded in 2014, ELLC raised £1.5m (US$2m) in its first round of crowdfunding in 2018. Its second round of crowdfunding surpassed the business’ goal of £750,000 (US$1m) in May 2021. Its Crowdcube page states £902,261 (US$1.3m) was raised from 757 investors.

Wolpert said there would be no changes at ELLC following the buyout: “The paperwork has now been filed and we continue to operate the business with the same hard graft we always have.

“I want you to know that we are the same distillery and brand we have always been, but that we’ve had to make uncomfortable choices in order to survive in the current climate.

“I’m sharing this with you because I believe that transparency as a supplier, partner and friend of other businesses is not just preferred, but should be a given.”

Wolpert also thanked Mangrove Global, its distributor since November 2022, for its support through the process.

In 2020, Wolpert spoke to The Spirits Business about his plan to make top-quality liquid affordable.